Gold futures settled marginally higher Tuesday, due mainly to lack of direction, profit taking and a stronger dollar after an impressive run last week following the new stimulus measures announced by the U.S. Federal Reserve.
Gold for December delivery, the most actively traded contract, gained $0.60 or 0.03 percent to close at $1,771.20 an ounce Tuesday on the Comex division of the New York Mercantile Exchange.
Gold for December delivery traded at an intraday high of $1,775.90 and a low of $1,753.20 an ounce.
Yesterday, gold ended marginally lower as the U.S. dollar traded higher against a basket of major currencies and the euro.
The euro traded lower against the dollar at $1.3047 on Monday, as compared to $1.3116 late Monday in North America. The euro scaled a high of $1.3119 intraday and a low of $1.3038.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.18 on Tuesday, up from 78.95 in North American trade late Monday. The dollar scaled a high of 79.21 intraday and a low of 78.92.
In economic news from the U.S., a report from the National Association of Home Builders showed that the NAHB/Wells Fargo Housing Market Index rose to 40 in September from 37 in August. Economists expected the index to show a more modest increase to a reading of 38. With the bigger than expected increase, the index rose to its highest level since coming in at 42 in June 2006.
From the eurozone, Germany's economic sentiment improved in September after easing for four straight months, the Mannheim-based ZEW said. The ZEW Indicator of Economic Sentiment rose 7.3 points to -18.2. However, the negative reading indicates that the financial market experts expect the German economy to lose momentum over the next six months.
Meanwhile, a survey report from the Office for National Statistics revealed that house price inflation in the U.K. eased more than expected in July. The ONS house price index rose 2 percent year-on-year in July, slower than 2.3 percent gain in June. This was also weaker than the 2.1 percent rise forecast by economists.
by RTT Staff Writer
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