Gold trades higher but remains under pressure
Published May 15, 2017 01:36PM ET
Gold prices snapped a three-week losing streak last Friday
Investing.com - Gold prices traded higher on Monday, as weaker than expected U.S. manufacturing data weighed on the dollar, which underpinned an uptick in commodity prices, while geopolitical concerns over North Korea resurfaced.
Gold for June delivery on the Comex division of the New York Mercantile Exchange gained $1.98 or 0.16%, to $1,229.72 a troy ounce by 13:38 EDT.
Gold futures' positive start to the week came under pressure, despite data showing that manufacturing in New York state shrank for the first time in seven months in May.
The Federal Reserve Bank of New York said its Empire State manufacturing index fell last month to minus 1, from 5.2 in April, as new orders dipped and shipment grew more quickly.
Meanwhile, geopolitical concerns resurfaced, which boosted safe-haven demand, after North Korea confirmed that it had carried out a missile test on Sunday.
The softer manufacturing print weighed on the dollar index, which dipped 0.21% to 98.84, and underpinned an uptick in the commodity prices.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A dip in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand.
Gold snapped a three-week losing streak last Friday, despite investors’ expectations that the Federal Reserve is poised to increase its benchmark rate in June.
According to investing.com’s Fed rate monitor tool 70% of traders expect the Federal Reserve to hike its benchmark rate in June.
Meanwhile, silver futures rose 1.30% to $16.616 a troy ounce while platinum added 1.25% to trade at $929.00.
Copper gained 0.59% to $2.539 while natural gas traded at $3.352, down 2.07%.
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Written By: Investing.com
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