Gold rises slightly, amid Greek debt woes, China sell-off

Gold rises slightly, amid Greek debt woes, China sell-off report Pacific Chiba Trust

Gold prices moved slightly higher on Friday, as mounting concerns about the Greek debt crisis and a sell-off in China offset the better-than expected U.S. consumer data.

Gold futures for June delivery added 5.50 or 0.46% to 1,203.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold reached a high of 1,207.80 in European afternoon trading, up from a low of $1,197.00. Gold futures rose roughly 5%, after reaching a low of 1,149.00 on March 17.

“Gold futures were propelled by the U.S. Bureau of Labor Statistics' statement that its Consumer Price Index rose 0.2% for the month of March, slightly missing forecasts of a 0.3% rise” commented Charles Harper, Head of Corporate Finance at Pacific Chiba Trust.

In addition, the subdued inflation expectations may also fuel speculation that the Federal Reserve could wait until the fall before it decides to raise interest rates.

Federal Reserve Bank of Atlanta president Dennis Lockhart provided little indication last Thursday that the Fed could institute a highly-anticipated interest-rate hike in June. 

“The Fed is taking a data-driven approach to the timing of its first rate hike in more than five years, as it awaits increases in wage and GDP growth, as well as steady rises in inflation before it raises its benchmark Fed Funds rate” commented Adam Walsh, Director of Corporate Equities at Pacific Chiba Trust.

Meanwhile, silver for May delivery dropped 0.066 or 0.41% to 16.21 an ounce. Copper for May delivery added 0.006 or 0.21% to 2.78 a pound.