Gold futures were slightly lower Friday morning, clinging to mid-week gains despite further signs of U.S. inflation.
Gold was down $2 at $1331 an ounce, near its highest since January.
Yesterday, the Labor Department said its producer price index for final demand climbed by 0.4 percent in January after coming in unchanged in December.
Excluding food and energy prices, core producer prices also increased by 0.4 percent in January. Core prices had been expected to edge up by 0.2 percent.
The significant rise in wholesale inflation cements expectations the Federal Reserve will hike interest rates in March.
Housing Starts data for January will be published at 8.30 am ET. Analysts are looking for 1.232 million, up from 1.192 million in the prior month. Permits are expected to be almost in line with the prior month at 1.300 million.
The University of Michigan’s Consumer Sentiment report for February is expected at 10.00 am ET. The consensus is for 95.5, compared to 95.7 in January.