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Gold continues higher after U.S. bounce

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Investing.com - Gold futures traded modesty higher in the early part of Tuesday's Asian session after the yellow metal started the week on a strong note Monday in the U.S.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery inched up 0.05% to USD1,256.35 per troy ounce in Asian trading Tuesday after settling 2.71% at USD1,256.85 a troy ounce in U.S. trading on Monday.

Gold futures were likely to find support at USD1,180.35 a troy ounce, Friday's low, and resistance at USD1,300.55, the high from June 24.

The strong start to the week could hearten beleaguered gold bulls that saw the yellow metal 24% during the second quarter, its worst quarterly performance since 1968. Talk of rising physical demand and some decent data points out of the U.S. and Europe also buoyed gold on Monday.

U.K.-based Markit's final euro zone purchasing managers' index hit a 16-month high of 48.8 in June, beating market calls for a 48.7 reading, which sent the single currency gaining.

Spain's manufacturing PMI rose to 50.0 in June, the highest level in two years, up from 48.1 in May and above expectations for a 48.5 reading.

In U.S. economic news out Monday, the Institute for Supply Management said its June manufacturing index rose to 50.9 from 49 in May. Economists expected a June reading of 50.6. Readings above 50 indicate expansion.

The Commerce Department said May construction spending jumped 0.5% following a 0.1% increase in April. Total spending rose to a seasonally adjusted annual rate of $874.9 billion in May, up 5.4% on a year-over-year basis.

Elsewhere, Comex silver for September delivery jumped 0.73% to USD19.720 per ounce while copper for September delivery fell 0.15% to USD3.153 per ounce.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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