Gold edged down on Friday as investors booked profits after a 1 percent rally, but it remained supported above $1,460 an ounce and on course for its biggest weekly gain in more than a year, according to Reuters report. Bullion has now recovered about 75 percent of massive losses incurred between April 12 and 16.
Spot gold hit its highest since April 15 at $1,484.81 an ounce, dipping to $1,463.25, down 0.3 percent, by 1547 GMT. U.S. gold futures for June delivery rose as high as $1,484.80 an ounce before slipping to $1,461.80, down 0.6 percent.
Sentiment, though buoyed, was still on an unsure footing with investors in exchange-traded funds heading for the exit, highlighted by further fund outflows on potential central bank sales and uncertainty over U.S. monetary stimulus.
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“There has been some profit-taking, although … poor (U.S.) Q1 GDP data missed the three percent target and that is encouraging for gold because the whole sell-off in the metal was linked to perceptions that the U.S. economy was getting stronger and stronger,” Societe Generale analyst Robin Bhar said.
U.S. first-quarter growth expanded at a 2.5 percent annual rate, missing economists’ expectations for 3 percent. Meanwhile, a separate report on consumer sentiment showed a drop from the previous month.
The data may fuel speculation on the possibility of more Federal Reserve measures to boost growth, or at least keep its current stimulus plans in place.
