The price of gold was holding on to its recent gains Tuesday morning even as the U.S. dollar was trading firm versus a basket of currencies.
Gold for June delivery, the most actively traded contract, edged up $0.90 to $1,644.80 an ounce. Yesterday, gold extended gains for a second session with investors seeking a safe haven after some disappointing U.S. jobs data last week and rising inflation in China. The precious metal was also supported by a weak dollar that pared early gains against some of the major currencies.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,286.62 tons.
This morning, the U.S. dollar was hovering near its 3-week high versus the euro, sterling and the Swiss franc, while ticking lower versus the yen.
In economic news from the euro zone, Germany's merchandise trade surplus increased more than economists expected in February, data released by the Federal Statistical Office showed. The trade surplus increased to EUR14.7 billion in February from EUR11.9 billion a year earlier. Economists were looking for a trade surplus of EUR12 billion. On a seasonally adjusted basis, the trade balance was a surplus of EUR13.6 billion.
Elsewhere, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the Commerce Department will release its wholesale inventories report at 10 a.m. ET. Economists expect wholesale inventories at the end of February to show a 0.6 percent increase following a 0.4 percent increase in the previous month.
by RTT Staff Writer
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