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Markets

Gold steady on hopes Iraqi turmoil will ease

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Investing.com -

Investing.com - Gold futures remained in positive territory due to safe-haven demand from investors worried over chaos erupting in Iraq remained in a tight trading range after President Barack Obama said the U.S. won't send in troops to quell the insurgency.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at 1,275.90 a troy ounce during U.S. trading, up 0.15%, up from a session low of $1,271.00 and off a high of $1,277.50.

The August contract settled up 1.01% at $1,274.00 on Thursday.

Futures were likely to find support at $1,250.10 a troy ounce, Tuesday's low, and resistance at $1,294.70, the high from May 27.

Investors worldwide continued to track a rebellion in Iraq led by a Sunni Islamist group that threatened to take Baghdad after capturing key cities elsewhere in the country.

Markets breathed a sigh of relief, however, after U.S. President Barack Obama said he won't sent troops to Iraq and added oil continues to flow normally out of the country, which capped gold's advance by boosting hopes U.S. support will help the Iraqi government halt the rebellion.

Elsewhere, soft U.S. economic indicators kept gold prices in positive territory.

In a preliminary report, the Thomson Reuters/University of Michigan consumer sentiment index fell to 81.2 this month from 81.9 in May, whose figure was revised up from a previously estimated reading of 81.8. Analysts had expected the index to rise to 83.0 in June.

Also on Friday, official data showed that U.S. producer price inflation fell 0.2% in May, confounding expectations for a 0.1% rise, after a 0.6% increase the previous month.

Core producer price inflation, which excludes food, energy and trade, slipped 0.1% last month, compared to expectations for an increase of 0.1%, after a 0.5% rise in April.

Meanwhile, silver for July delivery was up 0.69% at $19.668 a troy ounce, while copper futures for July delivery were up 0.49% at $3.030 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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