Gold Scales near 5Month Peak on Weaker Dollar

0
27

Focus on U.S. payrolls data on Friday

China factory growth picks up in May survey

Silver hits twoweek high 

June 1 Reuters Gold prices rose to a near fivemonth high on Tuesday, boosted by a weaker dollar and growing inflationary pressures, while investors awaited more U.S. data to gauge the extent of global economic recovery.

Spot gold was up 0.2 at 1,911.45 per ounce by 0255 GMT, after hitting its highest since Jan. 8 at 1,914.26 earlier in the session.

U.S. gold futures rose 0.5 to 1,914.20 per ounce.

Gold prices are riding a very strong upward trend … this is against the backdrop of a falling U.S. dollar and also inflation concerns, said Margaret Yang, a strategist at DailyFX.

Perhaps another fundamental factor behind gold is the return of Chinese and Indian buyers. In the nearterm, if gold can breach the 1,922 per ounce mark, it can open the room for further upside potential.

The dollar index was down 0.3 against its rivals, making gold less expensive for other currency holders. The U.S. unit registered its second consecutive monthly loss.

Last week, data showed U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserves 2 target.

Market participants focus this week will be on key U.S. economic readings, including nonfarm payrolls data due on Friday.

Federal Reserve officials have repeatedly maintained they expect any rise in inflation to be shortlived and said monetary stimulus would stay in place…

LEAVE A REPLY

Please enter your comment!
Please enter your name here