Investing.com - Gold prices were higher on Friday as disappointing data in the euro zone drove investors to the safe-haven asset.
Business sectors across Europe declined in preliminary data readings in March, with German manufacturing contracting to its slowest reading in six years.
“It is about the weakness in the economy in the euro zone and outlook for interest rates which makes holding gold more attractive,” said Quantitative Commodity Research analyst Peter Fertig.
Comex gold futures for April delivery rose 0.5% to $1,313.15 an ounce by 10:39 AM ET (14:39 GMT).
The fall in European data supports the Federal Reserve's dovish stance on Wednesday as the central bank remains concerned about economic growth in the U.S. and globally.
Gold is highly sensitive to interest rates, as lower rates tend to pressure the dollar and increase investor interest in non-yielding bullion.
An inversion in the U.S. Treasury yield curve also caused concern among investors. The yield curve for the U.S. 3-Month Treasury and the U.S. 10-Year inverted for the first time since 2007, which could point to a recession.
Brexit uncertainty has also helped raise the precious metal.
The European Union has given the U.K. until May 22 to leave the bloc, provided the British Parliament passes Prime Minister Theresa May’s Brexit deal next week. However, should the bill fail to pass, the EU has pushed back the official departure date by two weeks to allow parliament time to come up with another solution and prevent the U.K. from crashing out without a deal.
Other metals were lower on the Comex, with silver futures down 0.1% to $15.428 a troy ounce. Among other precious metals, platinum futures fell 1.2% to $850.80, while palladium futures slumped 1.9% to $1,528.50 an ounce. Copper futures slipped 1.6% to $2.860 a pound.