Investing.com - Bargain hunters sent gold prices rising on Friday though a better-than-expected U.S. housing report made gains short lived by cementing views the Federal Reserve remains on course to wind down stimulus programs that have bolstered the yellow metal for over a year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,252.30 a troy ounce during U.S. trading, up 0.98%, up from a session low of USD1,237.40 and off a high of 1,254.60.
The February contract settled up 0.15% at USD1,240.20 on Thursday.
Futures were likely to find support at USD1,233.90 a troy ounce, Wednesday's low, and resistance at USD1,254.70, Tuesday's high.
Gold prices have fallen in recent sessions amid sentiments the Federal Reserve will make fresh cuts to its USD75 billion in monthly bond purchases this year as the economy improves.
The Fed's bond-purchasing program, in effect since September of 2012, suppresses long-term interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
Data bolstered the dollar earlier though gold posted gains of its own, mainly on views by some that the commodity is oversold.
The preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 80.4 in January from 82.5 in December, defying expectations for a rise to 83.5.
Separately, official data showed that U.S. building permits declined 3% to 986,000 million units in December from 1.017 million units the previous month. Analysts had expected building permits to slip to 1.015 million units last month.
Data also showed that U.S. housing starts rose dropped 9.8% and came in at 999,000 units in December from an upwardly revised 1.107 million units in November.
Markets were expecting see 990,000 in new housing starts, and the better-than-expected figure boosted the dollar by suggesting fundamental improvements are taking place in the U.S. housing sector, which likely made gold's gains short-lived.
Meanwhile, silver for March delivery was up 1.29% and trading at USD20.313 a troy ounce, while copper futures for March delivery were down 0.01% and trading at USD3.342 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,252.30 a troy ounce during U.S. trading, up 0.98%, up from a session low of USD1,237.40 and off a high of 1,254.60.
The February contract settled up 0.15% at USD1,240.20 on Thursday.
Futures were likely to find support at USD1,233.90 a troy ounce, Wednesday's low, and resistance at USD1,254.70, Tuesday's high.
Gold prices have fallen in recent sessions amid sentiments the Federal Reserve will make fresh cuts to its USD75 billion in monthly bond purchases this year as the economy improves.
The Fed's bond-purchasing program, in effect since September of 2012, suppresses long-term interest rates to spur recovery, weakening the dollar in the process and making gold an attractive hedge.
Data bolstered the dollar earlier though gold posted gains of its own, mainly on views by some that the commodity is oversold.
The preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 80.4 in January from 82.5 in December, defying expectations for a rise to 83.5.
Separately, official data showed that U.S. building permits declined 3% to 986,000 million units in December from 1.017 million units the previous month. Analysts had expected building permits to slip to 1.015 million units last month.
Data also showed that U.S. housing starts rose dropped 9.8% and came in at 999,000 units in December from an upwardly revised 1.107 million units in November.
Markets were expecting see 990,000 in new housing starts, and the better-than-expected figure boosted the dollar by suggesting fundamental improvements are taking place in the U.S. housing sector, which likely made gold's gains short-lived.
Meanwhile, silver for March delivery was up 1.29% and trading at USD20.313 a troy ounce, while copper futures for March delivery were down 0.01% and trading at USD3.342 a pound.