Gold Futures Settle At Over 4-month High

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Gold prices moved higher, extending gains to a third successive session, and lifted the most active gold futures contracts to over 4-month closing high on Monday, as the dollar weakened and U.S. equities shed ground.

Traders moved away from riskier assets and turned to the safe haven yellow metal amid rising coronavirus cases in some Asian countries and inflation pressures.

The dollar index slipped to 90.16, losing about 0.19%. The dollar and Treasury yields eased following recent dovish comments from some Fed officials.

Traders now look ahead to the minutes from the Federal Open Market Committee’s latest meeting. The minutes, due out on Wednesday, are expected to provide clues about the central bank’s views on economic recovery and bond buying plans.

Weak U.S. retail sales data and mixed economic data from China contributed to the uptick in gold prices.

Gold futures for June ended up by $29.50 or about 1.6% at $1,867.60 an ounce, the highest close since January 7.

Silver futures for July moved up $0.909 to settle at $28.274 an ounce, while Copper futures for July settled at $4.7115 per pound, gaining $0.0570.

In economic news, after jumping to a more than three-year high in the previous month, the New York Federal Reserve’s index of regional manufacturing activity showed a modest pullback in the month of May.

The New York Fed released a report on Monday showing its general business conditions index dipped to 24.3 in May from 26.3 in April, although a positive reading still indicates growth in regional manufacturing activity.

Economists had expected the index to slip to 23.9 after reaching its highest level since October of 2017 in the previous month.

Homebuilder confidence in the U.S. held stable in the month of May, according to a report released by the National Association of Home Builders on Monday.

The report showed the NAHB/Wells Fargo Housing Market Index came in at 83 in May, unchanged from April. The unchanged reading matched economist estimates.

The material has been provided by InstaForex Company – www.instaforex.com

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