Gold Futures Settle Modestly Higher

Gold futures settled higher on Friday as the dollar stayed weak for much of the day’s session, paring some recent gains.

Strong GDP data that bolstered the case for further monetary tightening from the Federal Reserve, pushed up the dollar on Thursday.

The dollar index, which remained below the flat line save for a few minutes around mid morning, was down slightly at 104.39 a little while ago.

Gold futures for February ended higher by $8.90 at $1,804.20 an ounce.

Silver futures for March ended up $0.298 at $23.920 an ounce, while Copper futures settled at $3.8090 per pound, gaining $0.0520.

In economic news today, revised data from the University of Michigan showed one-year inflation expectations fell by more previously estimated in the month of December, coming in at a downwardly revised 4.4% from 4.6%.

One-year inflation expectations were at the lowest level in 18 months, down sharply from 4.9% in November.

Meanwhile, a closely watched Commerce Department reading on inflation showed consumer price growth slowed by more than expected in the month of November.

The reading on inflation, which is said to be preferred by the Federal Reserve, showed the annual rate of consumer price growth slowed to 5.5 percent in November from an upwardly revised 6.1 percent in October.

Economists had expected the annual rate of consumer price growth to slow to 5.3% from the 6% originally reported for the previous month.

On a monthly basis, consumer prices crept up by 0.1% in November after climbing by 0.4% in October, while core consumer prices edged up by 0.2% in November after rising by 0.3% in October.

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