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Gold gets a lift as dollar slides

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Investing.com - Gold continued to rally in the early part of Thursday's Asian session as the U.S. dollar traded lower against its major rivals.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.96% to USD1,255.35 per troy ounce in Asian trading Thursday after settling up 0.68% at USD1,251.85 a troy ounce in U.S. trading on Wednesday.

Gold futures were likely to find support at USD1,224.85 a troy ounce, Monday's low, and resistance at USD1,300.55, the high from June 24. Wednesday's U.S. session was shortened in advance of the Independence Day holiday.

Gold traded higher Wednesday despite some positive economic data points that could give the Federal Reserve room to begin tapering its USD85 billion-a-month bond-buying program in the near future. Fears that a stronger U.S. economy could bring about tapering prompted gold's 24% second-quarter plunge, the yellow metal's worst quarterly performance in multiple decades.

In U.S. economic news out Wednesday, weekly jobless claims fell 5,000 to a seasonally adjusted 343,000 last week. The less volatile four-week moving average dropped by 750 to 345,500, according to the U.S. Labor Department.

Payroll provider ADP said private employers added 188,000 new jobs last month. Heavy gains were seen in construction and small-business. The Labor Department delivers the June jobs report Friday before the open of U.S. markets.

The Institute for Supply Management said its services index fell to 52.2 last month from 53.7 in May. Economists expected a June reading of 54.

Elsewhere, Comex silver for September delivery surged 2.39% to USD19.770 per ounce while copper for September delivery inched up 0.05% to USD3.175 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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