Investing.com – Gold prices remained unchanged on Friday, as safe haven demand remained subdued, despite a pair of disappointing U.S. economic reports raising concerns about the outlook of U.S. economic growth in the second quarter
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange added $1.59 or 0.13%, to $1,256.15 a troy ounce. Gold prices remained on track to post a two-week losing streak.
U.S. homebuilding fell for a third straight month in May to the lowest level in eight months, suggesting that subdued housing activity could dent economic growth in the second quarter.
Housing starts dropped 5.5% to a seasonally adjusted annual rate of 1.09 million units, the Commerce Department said on Friday, well below forecasts of a 4.1% increase.
In a separate report the University of Michigan said its consumer sentiment gauged fell to 94.5 in early June from 91.1 in May. Analysts had expected a reading of 97.1.
The subdued economic reports weighed on the dollar as it dropped to session lows against its peers.
Gold struggled, however, to capitalize on the slump in the dollar as investor sentiment on the precious metal remained negative, after the Federal Reserve on Wednesday signaled that an additional rate hike may be appropriate.
Gold is sensitive to moves higher in both U.S. rates and the dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
In other precious metals news, silver futures lost 0.31% to $16.665, a troy ounce while platinum futures rose by 0.62% to $927.00.
Copper added 0.10% to $2.568, while natural gas dipped to 3.039, down 0.56%.