WASHINGTON (dpa-AFX) - Gold prices climbed to a 4-week high on Friday as the dollar shed ground and bond yields dropped amid expectations of a rate cut in June after data showed a slowdown in U.S. manufacturing activity and a deterioration in consumer sentiment in February.
The dollar index dropped to 103.86, losing about 0.28% from the previous close.
Gold futures for April ended higher by $12.00 at $2,054.70 an ounce. Gold futures gained about 2.3% in the week.
Silver futures for May ended up $0.479 at $23.364 an ounce, while Copper futures for May settled at $3.8615 per pound, gaining $0.0145.
Data from the Institute for Supply Management showed that the manufacturing PMI dipped to 47.8 in February from 49.1 in January, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 49.5.
The University of Michigan also released revised data showing consumer sentiment in the U.S. unexpectedly deteriorated in the month of February.
The report said the consumer sentiment index for February was downwardly revised to 76.9 from the previously reported 79.6. Economists had expected the reading to be unrevised.
With the unexpected downward revision, the consumer sentiment index is now below the January reading of 79.0.
Data released on Thursday showed inflation dropped in France, Germany and Spain slowed. Today, flash data from Eurostat showed Eurozone inflation softened for the second straight month in February. The harmonized index of consumer prices rose 2.6% annually after rising 2.8% in January. Prices were forecast to climb 2.5%.
Core inflation that excludes energy, food, alcohol and tobacco eased to 3.1% from 3.3% a month ago, the data showed. However, this was above economists' forecast of 2.9%. On a monthly basis, the HICP gained 0.6% in February.
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