Gold futures ended modestly higher Wednesday, even as investors weighed the outcome of the key European Union summit meeting due to start tomorrow. However, investors continue to be skeptic on the possibility of any resolution to the long-drawn financial crisis that has plagued the eurozone. Nonetheless, markets spruced up after some positive economic data from the U.S. and Europe.
The two-day summit meeting of EU leaders in Brussels Thursday will likely discuss ways to tackle the ongoing debt crisis in the eurozone, with focus on the issue of eurobonds, eurozone banking union and a growth pact. Nevertheless, speculation on common eurozone bonds dimmed after German Chancellor Angela Merkel ruled out such move.
Gold for August delivery, the most actively traded contract, gained $3.50 or 0.2 percent to close at $1,578.40 an ounce Wednesday on the Comex division of the New York Mercantile Exchange.
Gold traded at an intraday high of $1,584.60 an ounce and a low of $1,563.10 an ounce.
Gold ended lower yesterday as investors anxiously awaited the outcome of a key European Union summit meeting due later this week, which is largely expected to fall short of resolving the eurozone debt crisis.
The dollar index, which tracks the U.S. unit against six major currencies, was trading at 82.582 on Wednesday, up from 82.365 in North American trade late Tuesday. The dollar scaled a high of 82.70 intraday and a low of 82.30.
The euro traded lower against the dollar at $1.2461 on Wednesday, as compared to $1.2499 late Tuesday in North America. The euro scaled a high of $1.2508 intraday and a low of 1.2446.
In economic news, the U.S. Commerce Department said new orders for manufactured durable goods increased by $2.3 billion in May, a 1.1 percent increase over revised April levels. The April levels of durable goods orders were revised down to show a 0.2 percent decline rather than the relatively level rate previously reported.
Separately, the National Association of Realtors said its pending home sales index jumped 5.9 percent to 101.1 in May from 95.5 in April. Economists expected pending home sales to show a much more modest 1.2 percent increase.
From the eurozone, import price inflation in Germany eased to 2.2 percent in May from 2.3 percent in April, the Federal Statistical Office said. The import price index, excluding crude oil and mineral oil products, was 1.4 percent above the level of a year earlier.
by RTT Staff Writer
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