Gold futures rebounded to end sharply higher Wednesday, with the dollar continuing to trend lower against some major currencies, even as investors continued to weigh prospects of the U.S. Federal Reserve cutting back on its monetary easing program in the near future.
Gold also found support in declining global equity markets over uncertainties linked to the Fed move to taper down its quantitative easing measures.
Gold for August delivery, the most actively traded contract, gained $15.00 or 1.1 percent to close at $1,392.00 an ounce Wednesday on the Comex division of the New York Mercantile Exchange.
Gold for August delivery scaled an intraday high of $1,394.00 and a low of $1,372.20 an ounce.
Yesterday, gold settled lower after the Bank of Japan opted not to extend its stimulus program, with mounting speculation that the Federal Reserve may cut back its monetary easing measures in the near future. Nevertheless, the precious metal recovered from early lows as the dollar continued to struggle against some major currencies.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,009.85 tons.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.95 on Wednesday, down from 81.05 late Tuesday in North American trade. The dollar scaled a high of 81.31 intraday and a low of 80.75.
The euro traded higher against the dollar at $1.3325 on Wednesday, as compared to $1.3313 late Tuesday in North America. The euro scaled a high of $1.3360 intraday and a low of $1.3268.
In economic news, eurozone industrial production grew 0.4 percent in April from a month ago, due largely to higher output of capital goods and non-durable consumer goods, data from Eurostat revealed. Industrial output was forecast to remain flat after rising 0.9 percent in March.
Germany's EU harmonized inflation accelerated in May, but to a lesser extent than initially estimated, final data released by the Federal Statistical Office showed. Inflation as per the harmonized index of consumer prices (HICP) rose to 1.6 percent in May from 1.1 percent in April. The flash estimates were for an inflation rate of 1.7 percent.
The number of people claiming unemployment benefits in the U.K. decreased by 8,600 in May from April, the Office for National Statistics reported. The decline was sharper than the expected drop of 5,000.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.