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Gold Settles Lower For The Day, But Gains 2.2% In Week

Gold prices dropped on Friday, after moving higher in recent sessions, as U.S. equities displayed strength despite a batch of weak economic data.

The dollar’s highly sluggish movements limited the yellow metal’s fall.

The dollar index, which was up more than 100.70 in the Asian session, dropped to 100.25 in mid morning trades and mostly stayed around the flat line thereafter. It was last seen at 100.38, down marginally from previous close.

Gold futures for June ended down $9.80, or about 0.6%, at $1,735.60 an ounce.

Gold futures for June gained about 2.2% in the week, scoring gains in four successive weeks.

Silver futures declined $0.940 or about 0.6% to $15.263 an ounce, while Copper futures settled higher by 1.1% at $2.3370 per pound.

President Donald Trump today signed legislation providing $484 bill to support small businesses, hospitals and covid-19 testing amid the coronavirus pandemic.

The measure includes an additional $310 billion in funding for the Paycheck Protection Program (PPP), $60 billion of which is reserved for community banks and small lenders, $75 billion for hospitals, $25 billion to support testing efforts, and $60 billion for emergency disaster loans and grants.

Data from the Commerce Department showed a 14.7% drop in new durable goods orders in the month of March dragged down stock prices. Orders had increased by a downwardly revised 1.1% in February.

Economists had expected durable goods orders to fall 15% in March. The drop in orders in March was the steepest since August 2014.

Excluding transportation, new orders were down 0.2%, the report from the Commerce Department showed. Excluding defense, new orders fell 15.8%. Meanwhile, core capital goods orders, excluding aircraft and military hardware, edged up 0.1% in the month, the data showed.

Meanwhile, a report from the University of Michigan said its consumer sentiment for the US was revised higher to 71.8 in April of 2020 from a preliminary of 71. The score still remains the lowest since December 2011.

The material has been provided by InstaForex Company – www.instaforex.com