Gold prices look to notch a second week of gains

However, data Friday showed U.S. retail sales growth for April was flat, compared to forecasts for a rise of 0.8% and following a gain of 10.7% in March, which had been triggered by $1,400 stimulus checks paid to Americans.

“This is one more report that throws cold water on notions of the Federal Reserve tightening U.S. monetary policy anytime soon,” said Jim Wyckoff, senior analyst at Kitco.com, in a daily note.

Gold has been torn between the prospect of higher inflation, with evidence of pricing pressures building in consumer and producer-price data, but the chance of the Fed being forced to lift interest rates to cool the economy has checked bullion’s moves somewhat, some analysts have said.

June gold GCM21, +0.81% GC00, +0.81% was up $13.80, or 0.8%, to reach $1,837.80 an ounce on Comex, following a gain of nearly 0.1% on Thursday. Earlier in the week, gold touched its lowest intraday level since May 6 before punching higher, according to FactSet data.

If prices top Monday’s settlement of $1,837.60, they would mark the highest settlement since Feb. 10, FactSet data show.

Meanwhile, July silver SIN21, +1.57% added 36 cents, or 1.3%, to trade at nearly $27.40 an ounce.

“Higher interest rates tend to be bad for gold, but rising inflation is good, so the market is in a bit of a tussle to see where real rates are going,” wrote Neil Wilson, chief market analyst at Markets.com, in a daily note.

“With the Fed still seen keeping its thumb firmly pressed on shorter-dated yields, rising inflation expectations would tend to support the bull case for gold,” he wrote.

For the week, prices for gold, based on the most-active contract, have climbed by 0.4%, while silver has lost around 0.3%.

Gold prices “held up reasonably well this week” despite a firmer U.S. dollar and a slight increase in U.S. 10-year Treasury yields, “buoyed instead by rising inflation fears,” said Edward Meir, analyst at ED&F Man Capital Markets, in a note Friday. “After all, gold is supposed to be the quintessential ‘inflation hedge’ and so if it were to do well, now is the time.”

Among other metals traded on Comex, July copper HGN21, -0.93% shed 0.5% to $4.66 a pound, poised for a weekly loss of 1.7%.

July platinum PLN21, +1.47% tacked on 1.2% to $1,221.60 an ounce , trading down 2.7% for the week. June palladium PAM21, +0.71% added 0.7% to $2,885.50 an ounce, poised for a weekly loss of around 1.4%.