Gold Rises After Weak Data from US Economy

Gold traded near a two-month high in New York as investors weighed signs of an uneven U.S. economic recovery. Silver declined from the highest level since March.

The dollar fell to a seven-week low against a basket of 10 major currencies after U.S. data this week showed the economy shrank more than previously estimated in the first quarter and durable-goods orders unexpectedly declined. A report yesterday showed consumer confidence last week held near its 2014 high as views on the economy were the second-strongest since 2008.

Bullion slid 28 percent last year on expectations that the U.S. central bank would scale back stimulus. Prices are now set for the first back-to-back quarterly gains since 2011, partly as tensions in Iraq and Ukraine spurred demand for a haven. Gold demand in Asia, the largest buying region, remains weak, Standard Bank Group Ltd. said in a report yesterday.

“The dollar is under pressure, which is good for gold,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co. in Shanghai. “U.S. economic data remains mixed, however we retain the view that U.S. rates will eventually rise.”

Gold for August delivery lost 0.1 percent to $1,315.60 an ounce by 7:27 a.m. on the Comex in New York. It reached $1,326.60 on June 24, the highest since April 15. Bullion for immediate delivery declined 0.1 percent to $1,315.08 in London, according to Bloomberg generic pricing.

Futures trading volume was 8.6 percent below the average for the past 100 days for this time of day, according to data compiled by Bloomberg.

via Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.