Investing.com - Gold prices rose on Tuesday on demand from
bottom fishers who viewed the commodity as oversold, while concerns
the Russia-Ukraine conflict will escalate sent investors seeking
safe harbor in the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at 1,292.20 a troy ounce
during U.S. trading, up 0.26%, up from a session low of $1,283.60
and off a high of $1,294.90.
The December contract settled down 0.46% at $1,288.90 on
Futures were likely to find support at $1,281.00 a troy ounce,
last Friday's low, and resistance at $1,314.60, the high from July
Gold prices reached levels ripe for bottom fishing earlier as
investors priced in otherwise bearish data for the commodity.
The Institute of Supply Management reported earlier that its
services purchasing managers' index jumped to 58.7 in July from
56.0 in June.
Economists had expected the index to tick up to 56.3, and the
better-than-expected figure sparked demand for the dollar as
investors adjusted their timetables as to when the Federal Reserve
may hike interest rates, with many betting tightening may come
sooner than once thought.
Tighter policy tends to be bearish for gold by eroding is appeal
as a hedge to a weaker dollar, though geopolitical concerns sent
investors seeking safe harbor in the precious metal, especially due
to sentiments the asset was oversold.
Reports surfaced earlier that Russia was amassing more troops
near its border with Ukraine, which rattled markets worldwide by
stoking concerns an escalating conflict could dampen global
Since the West slapped sanctions on Moscow several days ago for
allegedly meddling in Ukraine's affairs by supporting separatists,
Russian troops along the border have reportedly jumped to 20,000
Meanwhile, silver for September delivery was down 1.73% at
$19.883 a troy ounce, while copper futures for September delivery
were down 1.29% at $3.202 a pound.
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