Gold futures shoot up to session high after dismal ISM data
Investing.com
Published Jun 03, 2013 10:05AM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,401.25 a troy ounce during U.S. morning hours, up 0.6% on the day.
Comex gold prices held in a range between USD1,388.55 a troy ounce, the daily low and a session high of USD1,402.25 a troy ounce.
Gold futures were likely to find support at USD1,353.55 a troy ounce, the low from May 22 and resistance at USD1,421.25, the high from May 31 and a two-week high.
The Institute for Supply Management said in a report earlier that its index of purchasing managers fell to 49.0 in May from a reading of 50.7 in April.
Analysts had expected the ISM index of purchasing managers to hold steady at 50.7 last month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The disappointing data dampened expectations that the Federal Reserve will begin to scale back its USD85 billion a month asset purchase program this year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.
Investors are now looking ahead to the release of a closely watched report on U.S. nonfarm payrolls on Friday for further hints regarding the direction of U.S. monetary policy.
Elsewhere on the Comex, silver for July delivery rallied 1.45% to trade at USD22.56 a troy ounce, while copper for July delivery added 0.5% to trade at USD3.309 a pound.
Copper prices were supported as stronger-than-expected Chinese manufacturing data bolstered demand for growth-linked assets.
Official data on Sunday showed that China’s manufacturing purchasing managers’ index rose to 50.8 in May from 50.6 in April.
Earlier Monday, a separate report showed that China’s HSBC manufacturing PMI slid down to 49.2 in May, the lowest level since October 2012, from 49.6 in April.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.