Home/Commodities/Newsfeed

Gold Rises After Weak Data from US Economy

Share Print 0

Gold traded near a two-month high in New York as investors weighed signs of an uneven U.S. economic recovery. Silver declined from the highest level since March.

The dollar fell to a seven-week low against a basket of 10 major currencies after U.S. data this week showed the economy shrank more than previously estimated in the first quarter and durable-goods orders unexpectedly declined. A report yesterday showed consumer confidence last week held near its 2014 high as views on the economy were the second-strongest since 2008.

Bullion slid 28 percent last year on expectations that the U.S. central bank would scale back stimulus. Prices are now set for the first back-to-back quarterly gains since 2011, partly as tensions in Iraq and Ukraine spurred demand for a haven. Gold demand in Asia, the largest buying region, remains weak, Standard Bank Group Ltd. said in a report yesterday.

“The dollar is under pressure, which is good for gold,” said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co. in Shanghai. “U.S. economic data remains mixed, however we retain the view that U.S. rates will eventually rise.”

Gold for August delivery lost 0.1 percent to $1,315.60 an ounce by 7:27 a.m. on the Comex in New York. It reached $1,326.60 on June 24, the highest since April 15. Bullion for immediate delivery declined 0.1 percent to $1,315.08 in London, according to Bloomberg generic pricing.

Futures trading volume was 8.6 percent below the average for the past 100 days for this time of day, according to data compiled by Bloomberg.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

Back to Top