Gold prices drifted lower on Friday as rising bond yields amid a surge in new home sales in the U.S. dented demand for the safe-haven asset.
Gold prices advanced despite the dollar’s weakness. The dollar index tumbled to 90.91, losing nearly 0.5%.
Gold futures for June ended down $4.20 or about 0.2% at $1,777.80 an ounce. Gold futures shed about 0.1% in the week.
Silver futures for May ended lower by $0.105 or 0.4% at $26.075 an ounce, while Copper futures for May ended higher by $0.0.630 or 1.5% at $4.3360 per pound.
Data released by the Commerce Department showed new home sales in U.S. skyrocketed by 20.7% to an annual rate of 1.021 million in March after plunging by 16.2% to a revised rate of 846,000 in February.
Economists had expected new home sales to spike by 14.3% to a rate of 886,000 from the 775,000 originally reported for the previous month. With the rebound, new home sales soared from the eight-month low set in February to their highest level since August of 2006.
The flash reading of the IHS Market US. composite purchasing managers index rose to a record high 62.2 in April from 59.7 in March, suggesting both the manufacturing and services sectors are recovering rapidly from the coronavirus pandemic.
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