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Gold gains on weaker euro, eyes U.S. retail sales data

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Investing.com -

Investing.com - Gold future carried Monday's gains into Tuesday as investors snapped up positions to hedge against a weaker euro, though gains were limited due to a lack of fresh steering currents to move the yellow metal in one direction or the other.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,259.90 a troy ounce during U.S. trading, up 0.48%, up from a session low of $1,250.40 and off a high of $1,263.70.

The August contract settled up 0.11% at $1,253.90 on Monday.

Futures were likely to find support at $1,241.20 a troy ounce, Thursday's low, and resistance at $1,294.70, the high from May 27.

The European Central Bank's recent decision cut interest rates continued to weigh on the euro, which bolstered gold's appeal as a hedge.

The European Central Bank cut its benchmark interest rate last week to a record-low 0.15% from 0.25%, cut its deposit rate to -0.1% and said it will support the banking sector to spur lending via targeted long-term credit injections.

Still, gold's gains were limited to due to a strengthening dollar, which historically trades inversely with the precious metal.

Many investors opted to avoid gold until Thursday, when U.S. retails sales hit the wire, data that should provide metals and other markets with fresh insight into the health of the U.S. economy.

Meanwhile, silver for July delivery was up 0.61% at $19.182 a troy ounce, while copper futures for July delivery were up 0.49% at $3.058 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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