Gold rises amid bargain hunting, talk of rising physical demand
Published Jul 01, 2013 01:32PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were up 2.71% at USD1,256.85 a troy ounce in U.S. trading on Monday, up from a session low of USD1,224.85 and down from a high of USD1,260.95 a troy ounce.
Gold futures were likely to find support at USD1,180.35 a troy ounce, Friday's low, and resistance at USD1,300.55, the high from June 24.
Gold prices fell 24% during the second quarter of this year, and on the first trading day of the third quarter, prices shot up on talk that physical demand may be on the mend, which brought in the bargain hunters Monday.
Meanwhile, a rising euro took gold prices up with it by weakening the dollar, which tends to trade inversely with the precious metal.
U.K.-based Markit's final euro zone purchasing managers' index hit a 16-month high of 48.8 in June, beating market calls for a 48.7 reading, which sent the single currency gaining.
Spain’s manufacturing PMI rose to 50.0 in June, the highest level in two years, up from 48.1 in May and above expectations for a 48.5 reading.
France’s manufacturing PMI came in at 48.4 compared to market calls for 48.3, but Germany’s manufacturing PMI came in at 48.6, missing expectations for a 48.7 reading, which gave both the euro and gold added support.
Elsewhere, official data revealed that the euro zone's unemployment rate hit 12.1% in May from 12.0% in April, slightly lower than expectations for a 12.3% reading.
The euro zone's consumer price index rose to 1.6% in June from 1.4% in May, in line with expectations.
Elsewhere on the Comex, silver for September delivery was up 0.50% at USD19.568 a troy ounce, while copper for September delivery was up 3.36% and trading at USD3.160 a pound.
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Written By: Investing.com
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