Gold built on its gains today after poor US data dented the dollar and cemented dovish Federal Reserve policy.
Gold for June delivery on the Comex division of the New York Mercantile Exchange closed up $10.70 at $1,213.90 per ounce. On Monday, the yellow-metal rose nearly $30, marking the biggest single day gain since January.
“Just as we were very close to throwing in the towel on the long side of the gold trade in our most recent commentary, Monday’s action vindicated our decision to stay the course,” Edward Meir, an analyst at INTL FCStone, said.
In US data, the CB consumer confidence for April came in at 95.2, missing the 102.6 forecast. The Richmond Manufacturing Index was down three percent in April, off a projected two percent downturn. The S&P/CS Composite-20 HPI was five percent in February, ahead of the 4.7 forecast.
The dollar index fell to the lowest level since early April at 96.0580, down 0.7 percent today. The euro was 0.9 percent stronger at 1.0985 against the dollar.
Market participants now await the Federal Open Market Committee (FOMC) statement due out tomorrow. While higher rates are not yet expected, investor will look for clues on when rate might rise from 0-0.25 percent.
“Gold is poised at a round number pivot level ahead of the FOMC meeting,” London-based broker Triland Metals said. “We are holding briefly above the broken downtrend line from April but a slip back below $1,200 is likely if the market remains below the cluster of action between $1,208 and $1,210 – above here and the metal could quickly race to test the upper bound of our range at $1,225.”
In US equities, the Dow Jones industrial average and S&P were last up 0.2 and 0.1 percent respectively.
Meanwhile in Europe, investors are still watching the Greek debt situation, especially now that PM Alexis Tsipras has demoted lead negotiator and Finance Minister Yanis Varorfakis after months of ineffectiveness in resolving the country’s debt obligations.
In European equity markets, Germany’s DAX and France’s CAC-40 ended down 1.9 and 1.8 percent respectively.
As for the other precious metals, Comex silver for May delivery closed up 22 cents at $16.62 per ounce. Trade has ranged from $16.275 to $16.66. Platinum for June delivery on the Nymex rose $7.50 to $1,160.9, while the most actively traded palladium contract was at $778.70, up $8.45.
Light sweet crude (WTI) futures increased one cent to $57.07 per barrel in the most active contract.
(Editing by Tom Jennemann)
The post Gold end higher on poor US data, weak dollar appeared first on The Bullion Desk.
No comments:
Post a Comment