Gold trades near 15-week low amid improvement in U.S. data, weak China demand . . . . . . . . . . . . Precious-Gold was little changed on Wednesday, following sharp losses overnight, to trade around 3-1/2 month low, amid improvement in U.S. economic data and slowdown in Chinese demand. Still, the focus is on U.S. data as investors aim to gather clues about the strength of recovery that would weigh on the Fed’s monetary decision in the future. Data released on Tuesday signaled an unexpected rise in U.S. orders for long-lasting goods in April. Durable goods soared 0.8 percent from an upwardly revised of 3.6 percent in March, compared with analysts’ forecast of 0.7 percent drop. Another important figure showed that consumer confidence surged to 83.0 this month from 81.7 the prior month. Inflation risks are muted and therefore the Fed does not “face a trade-off between its employment and inflation objectives, and an expansion of aggregate demand would result in further progress relative to both objectives,” minutes of the Fed’s monetary meeting for April said last week. In China, net gold imports from Hong Kong slipped to 64.5 metric tons last month from 86.0 tons a month earlier, according to calculations by Bloomberg based on data from the Hong Kong Census and Statistics Department yesterday. Meanwhile, gold is trading around $1264.58 an ounce after hitting a high of $1265.62 and a low of $1260.73. The metal plunged more than 2 percent yesterday after the breach of critical support level, yet it found some support at $1260. Among other precious metals, sliver slipped to $19.09 from the session’s opening of $19.13, platinum settled at $1461.70 and palladium was slightly changed wobbling around $830.25. The U.S. dollar rose for a second straight session versus a basket of major currencies to hover around 80.43, after touching a high of 80.45. Brent crude for July delivery inched up to trade around $110.30 from the session’s opening of $110.18. Crude oil for July’s delivery ticked up to trade around $104.22 a barrel after setting a high of $104.27. #egyptyard
Posted on: Wed, 28 May 2014 08:01:22 +0000
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