Metals: Gold Prices Recover From Thursday Lows

By Stephanie Yang and David Hodari Features Dow Jones Newswires

Gold prices inched higher on Friday, as a weaker dollar helped the precious metal recover some lost ground after the Federal Reserve raised interest rates.

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Gold for August delivery rose 0.2% to $1,256.50 a troy ounce on the Comex division of the New York Mercantile Exchange, rallying on bargain hunting after hitting three-week lows on Thursday.

The WSJ Dollar Index, which measures the dollar against a basket of currencies, fell 0.3%, to 88.40. A weaker dollar is generally supportive of dollar-denominated metals.

The combination of a dollar downtick and buying of cheaper gold allowed prices to stage a small relief rally, analysts said.

Softer inflation data may also still lead the Fed to hold off on further normalization, said Joni Teves, strategist at UBS, in a Thursday note. "This would suggest to us that gold has some catching up to do ahead [and] current weakness presents a good opportunity to build positions at more attractive levels," Ms. Teves wrote.

Meanwhile, copper for July delivery settled down 0.1%, to $2.5640 a pound on the Comex division of the New York Mercantile Exchange.

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Thursday saw the release of U.S. industrial production data, which revealed zero growth in May. The cumulative effect of this metric and Wednesday's weaker-than-expected consumer-price index and retail sales data fueled fears that the U.S. economy may be slowing, according to Investec in a morning note.

"There is increased doubt that [President Donald] Trump will be able to carry out planned infrastructure stimulus," Investec said.

Write to Stephanie Yang at stephanie.yang@wsj.com and David Hodari at David.Hodari@dowjones.com

(END) Dow Jones Newswires

June 16, 2017 17:14 ET (21:14 GMT)