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Gold futures edge higher in Asian trade

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Forexpros - Gold futures bounced back from a two-day low Monday, as the U.S. manufacturing sector showed sluggish growth and the House of Representatives approved a measure to raise the U.S. debt ceiling.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,621.95 a troy ounce during Asian mid-day trade, moving 0.03% higher.

Gold had fallen earlier by as much as 1% to trade at USD1,608.85 a troy ounce, its lowest level since July 28.

In its Monday report, the U.S. Institute for Supply Management said its index of purchasing managers fell to 50.9 in July. That was down from 55.3 in June and below analysts' expectations of a drop to 54.8 in July.

But gold gains were muted by news that the U.S. House had voted to approve a bill to cut spending and raise the USD14.3 trillion debt ceiling by at least USD2.1 trillion.

Standard & Poor's said in a July 21 report that it might consider downgrading the U.S' AAA sovereign credit rating if a deal were not accompanied by a "credible solution" to the debt burden.

Meanwhile, financial service provider Deutsche Bank said in a report it expected gold prices to remain well-supported in the short-term due to ongoing global economic uncertainty.

Elsewhere on the Comex, silver for September delivery rose 0.8% to trade at USD39.63 a troy ounce, while copper for September delivery picked up 0.22% to trade at USD4.416 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.

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