Gold prices drifted lower on Friday, extending recent losses, as traders continued to go for riskier assets such as equities amid rising optimism about resumption of U.S.-China trade talks in September.
The dollar’s continued strength contributed as well to the yellow metal’s decline.
The dollar index moved past the 99 mark to 99.02, and was last seen at 98.97, up nearly 0.5% from previous close.
Gold futures for December ended down $7.50, or 0.5%, at $1,529.40 an ounce, the lowest level since
On Thursday, Gold futures for December ended down $12.20, or 0.8%, at $1,536.90 an ounce.
For the week, gold futures shed about 0.5%, although they gained more than 6% in August, surging ahead for the fourth straight month.
In economic news, a report from the Commerce Department said U.S. personal income crept up by less than expected in the month of July, rising just 0.1%, after climbing by an upwardly revised 0.5% in June. Personal income was expected to rise by 0.3% in July, compared to the 0.4% increase originally reported for the previous month.
Meanwhile, personal spending grew by 0.6% in July after rising by an unrevised 0.3% in June. Economists had expected personal spending to climb by 0.5%.
According to the report released by MNI Indicators, Chicago-area business activity unexpectedly returned to expansion in the month of August. MNI indicators said its Chicago business barometer jumped to 50.4 in August after tumbling to 44.4 in July. Economists had expected the index to climb to 47.5%.
Despite the jump by the Chicago business barometer, MNI Indicators said the survey still suggests a softer overall tone in business activity, as the three-month average dipped to 48.2.
On the inflation front, the prices paid index rose to a five-month higher of 59.8 in August, although it is still well shy of the 12-month high of 79.8.
Meanwhile, revised data released by the University of Michigan on Friday showed U.S. consumer sentiment deteriorated by even more than initially estimated in the month of August.
The report said the consumer sentiment index for August was downwardly revised to 89.8 from the preliminary reading of 92.1.
The revised reading is down sharply from the final July reading of 98.4, showing the biggest monthly drop since December of 2012.
The material has been provided by InstaForex Company – www.instaforex.com