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Gold prices move higher but gains seen limited

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Investing.com -

Investing.com - Gold prices moved higher on Monday but gains looked likely to remain limited as a stock market rally dampened safe haven demand for the precious metal.

On the Comex division of the New York Mercantile Exchange, gold for August delivery was up 0.18% to $1,254.80, holding above the four month lows of $1,240.51 reached early last week.

Gold remained supported on Monday after notching up gains of 0.5% last week after the European Central Bank unveiled a package of measures to avert the threat of persistently low inflation in the euro area.

Gold ended Friday's session almost unchanged after the U.S. nonfarm payrolls report for May indicated that the labor market is continuing to improve, with employment returning to its pre-recession peak. The upbeat data saw U.S. stocks surge to record highs on Friday, amid optimism over the broader recovery.

Asian equities markets followed suit on Monday, with gains across the region and market sentiment received an additional boost after Japan's first quarter growth was revised sharply higher.

Japan's economy grew at an annualized rate of 6.7% in the first three months of the year, up from a preliminary estimate of 5.9% growth. The unexpected upward revision was due to a sharp upward revision in Japanese corporate capital spending.

Gold, often seen as an investment hedge, tends to have an inverse co-relation with equities and the dollar.

Elsewhere, in metals trading, silver for July delivery was up 0.46% to $19.078 a troy ounce, while copper for July delivery dropped 0.80% to $3.027 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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