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Gold futures on the COMEX division of the New York Mercantile Exchange fell Friday as investors locked in profits from gains on disappointed economic data and weaker U.S. dollar.

The most active gold contract for December delivery fell 6.8 U.S. dollars, or 0.5 percent.

SPDR GOLD TRUST HOLDINGS DROP 1.22% TO 960.45 METRIC TONS

Wall Street and Main Street are once again on the same page, looking for gold prices to rise next week, particularly after softer-than-forecast U.S. reports Friday on retail sales and the Producer Price Index.

“The data on Friday – the Producer Price index and retail sales were weaker than expected – probably lowers the odds of raising interest rates,” said Phil Flynn, senior market analyst with at Price Futures Group. “That will put downward pressure on the dollar and upward pressure on gold next week.”

Charlie Nedoss, senior market strategist with LaSalle Futures Group, looks for follow-through to the upside, particularly with the December futures holding above the 20-day moving average of $1,345.70. “Basically, the market came down and tried to shake out the dead wood out of the 20-day, and the market held up very well.”

Meanwhile, Ken Morrison, editor of the newsletter Morrison on the Markets, looks for a retest of support below the market.

“Momentum in the near term is at a pivotal time for gold,” he said. “A close below $1,340 would trigger a sell signal with a target of $1,320, near the 50-day moving average. To regain positive momentum, gold needs to sustain a rally above the early August high of $1,374, which seems improbable in the short term given the stability in global markets. For the week ahead, I favor the test of $1,320 support scenario.”

The July Consumer Price Index (CPI) is released on Tuesday and consensus estimates are calling for a headline print of 0.9% y/y (down from 1% in June) with core inflation expected to hold steady at 2.3% y/y. In light of Friday’s disappointing retail sales release, a soft print on CPI could further exacerbate recent weakness in the greenback as expectations for higher rates from the Federal Reserve this year continue to diminish. Keep in mind we’ll also be looking to a fresh batch of commentary from Atlanta Fed President Dennis Lockhart, St. Louis Fed President James Bullard, New York Fed President William Dudley and San Francisco Fed President John Williams with minuets from the latest FOMC policy meeting to be released on Wednesday. As it stands, Fed Fund Futures are pricing in the first material expectation (+60%) for higher rates to be in September of 2017.

India’s gold imports fell by 76 per cent to 60 tonnes in the April-July period this financial year, according precious metals refining and fabricating company MMTC-PAMP.

Last year, the country imported 250 tonnes of the yellow metal during these four months.

According to MMTC-PAMP, the dip is attributed to the high import duty of 10 percent and other taxes.

Reference: Kitco, Xinhua, Daily FX, Indian Express