Gold futures settled higher Tuesday, on near-term expectations that the European Central Bank will announce additional easing measures and likely to be followed by other central banks after the recent batch of weak economic data globally. Gold prices were also impacted after the dollar dropped against most major currencies following some upbeat data from the U.S. that showed factory orders increased more than expected.
Gold for August delivery, the most actively traded contract, gained $24.10 or 1.5 percent to close at $1,621.80 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold traded at an intraday high of $1,625.70 an ounce and a low of $1,595.30 an ounce.
Gold ended lower yesterday, as the hopes brought about by the EU deal dimmed with investors preferring the safe haven of the dollar and treasuries after some weak economic data from the U.S.
The euro traded higher against the dollar at $1.2612 on Tuesday, as compared to $1.2583 late Monday in North America. The euro scaled a high of $1.2626 intraday and a low of 1.2560.
The dollar index, which tracks the U.S. unit against six major currencies, was trading at 81.775 on Tuesday, down from 81.888 in North American trade late Monday. The dollar scaled a high of 82.03 intraday and a low of 81.70.
In economic news, the U.S factory orders posted a stronger than expected rebound in May buoyed by orders of ships, boats and aircraft, according to the Commerce Department. New orders for manufactured goods up $3.3 billion, a 0.7 percent increase that partially reverses two consecutive months of declines. Economists estimated 0.1 percent increase in orders for factory goods following a 0.6 percent drop in the previous month.
Elsewhere, eurozone producer prices fell 0.5 percent month-on-month in May, data released by Eurostat showed. The decline was slightly more than the 0.3 percent drop predicted by economists. In April, the producer price index rose 0.1 percent. On an annual basis, the price index gained 2.3 percent compared to expectations for a 2.5 percent rise.
Meanwhile, consumer price inflation in the Organization for Economic Cooperation and Development (OECD) area slowed for the third consecutive month in May, latest data showed. The consumer price index increased 2.1 percent on an annual basis in May, after growing 2.5 percent in the previous month. In March and February, inflation rates were 2.7 percent and 2.8 percent respectively.
by RTT Staff Writer
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