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Gold remains near 14-week high after disappointing ISM report

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Investing.com -

Investing.com - Gold futures held near a 14-week high on Tuesday, after data showed that manufacturing activity in the U.S. expanded at a slower rate than expected in June.

On the Comex division of the New York Mercantile Exchange, gold for August delivery rose to a session high of $1,333.10 a troy ounce, the most since March 24, before trimming gains to last trade at $1,327.60 during U.S. morning hours, up 0.45%, or $5.90.

Gold ended Monday's session up 0.15%, or $2.00, to settle at $1,322.00. Prices were likely to find support at $1,305.40, the low from June 25 and resistance at $1,339.10, the high from March 21.

Also on the Comex, silver for September delivery tacked on 0.39%, or 8.2 cents, to trade at $21.13 a troy ounce.

The Institute for Supply Management said its index of purchasing managers fell to 55.3 last month from a reading of 55.4 in May. Analysts had expected the manufacturing PMI to increase to 55.8 in June.

Investors now turned their attention to the U.S. nonfarm payrolls report for June, due to be released one day early on Thursday, for further indications on the strength of the labor market.

Analysts expect the U.S. economy to have added 210,000 jobs this month while the jobless rate is seen steady at 6.3%.

Gold prices remained supported amid expectations the Federal Reserve will keep rates on hold for an extended period of time after data last week showed that the U.S. economy shrank at an annual rate of 2.9% in the first quarter.

Elsewhere in metals trading, copper for September delivery inched up 0.06%, or 0.2 cents, to trade at $3.205 a pound as traders digested data on China's manufacturing sector.

Government data released earlier showed that China's official manufacturing purchasing managers' index rose to a six-month high of 51.0 in June, in line with expectations and up from 50.8 in May.

Meanwhile, China's final HSBC Purchasing Managers Index came in at 50.7, weaker than a preliminary reading of 50.8 but higher than May's 49.4 figure.

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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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