Gold futures rose for a fifth straight session on Thursday, after a report on U.S. inflation sparked expectations that the Federal Reserve will undertake a new stimulus. Gold for August delivery ended up 20 cents at $1,619.60 an ounce on the COMEX, at the lower end of the day’s trading range.July silver futures fell 1.9%, or 53 cents, to $28.41 an ounce. Traders commented that the session was quiet, with many investors choosing to remain on the sidelines ahead of this weekend’s Greek elections.
Gold was supported by more weak U.S. economic data; the more downbeat data the country releases the higher the likelihood that the Fed will embark on a third round of quantitative easing. The Federal Reserve’s FOMC meets next week to discuss monetary policy.
This morning, the Labor Department reported that retail prices fell 0.3% in May driven down by the falling gas prices. It was the first drop in the Consumer Price Index in two years. Also, jobless claims were higher than expected, and the country’s account deficit rose to $137.3 billion, $5 billion higher than projections.