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Gold falls on U.S. data, multiple ISM data corrections

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Investing.com -

Investing.com - Gold futures fell on Monday after data revealed an expanding U.S. manufacturing sector despite two corrections made to a widely-watched factory index that confused markets earlier.

Still, investors bet the U.S. economy continues to recover and is in less need of monetary support from the Federal Reserve.

Monetary stimulus tools such as the Fed's monthly asset-purchasing program weaken the dollar by suppressing longer-term interest rates, making gold an attractive hedge as long as they remain in place.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,243.20 a troy ounce during U.S. trading, down 0.22%, up from a session low of $1,241.20 and off a high of $1,251.00.

The August contract settled down 0.88% at $1,246.00 on Friday.

Futures were likely to find support at $1,237.50 a troy ounce, the low from Jan. 30, and resistance at $1,304.10, last Thursday's high.

In the U.S., the Institute of Supply Management originally reported that its manufacturing purchasing managers' index for May ticked down to 53.2 from 54.9 a month earlier, before correcting it two times, once to 56.0 and a second time to 55.4.

While the corrections confused markets, gold remained lower, as any figure over 50 signifies expansion.

Analysts were originally expecting a 55.5 reading.

Technical selling and waning physical demand in Asia sent prices falling as well.

Meanwhile, silver for July delivery was up 0.16% at $18.712 a troy ounce, while copper futures for July delivery were up 1.40% at $3.167 a pound.

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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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