Gold prices steadied near the five-week low in the early morning trade Friday, pressured by the positive economic data and stronger dollar amid reduced global demand for the metal as a safe haven.
As of 04:09 New York time, Spot Gold rose 0.15% to $1,292.77 an ounce. The metal traded in a range between $1,291.00 and $1,294.80 compared with the previous close at $1,291.00.
Among other precious metals:
- Spot Silver fell 0.08% to $20.45 an ounce
- Spot Platinum rose 0.20% to $1,471.75 an ounce
- Spot Palladium rose 0.51% to $874.40 an ounce
Commodity prices are conversely affected by the strength of the US dollar, which gained after yesterday`s decline in U.S. jobless claims to new lows, supporting expectations the economic recovery is on track, which in turn boosts speculation of an imminent rate hikes by the Federal Reserve.
More US data might give the dollar the strength to extend stability against a six-currency basket, near the lowest level in five weeks. Today, investors are waiting for June durable goods, expected advance 0.5% from a drop of 1.0% a month ago.
The USDIX traded around 81.03 and a high of 81.06 and a low of 80.89 compared to the opening price at 80.94.
The sentiment for bullion was also hammered by shrinking demand for the metal as a safe haven as investors saw an improvement in the risk appetite, which seemed evident early this morning in Asia where stocks rallied after second-quarter corporate results surpassed expectations.
The growth of the manufacturing sector in China over the past month accelerated by the fastest pace in 18 months, and with the growth sectors of the economy yesterday in the euro zone and Germany, the highest of expectations trimmed fears for the future of global economic growth, but was quite offset after the International Monetary Fund reduced the outlook for global growth in 2014, with the economic slowdown cited the United States and China.
On the energy markets, oil futures stabilized around a three-week low on the heels of a stronger dollar as well as the builup in US crude stockpiles last week.
- West Texas Intermediate for July delivery fell 0.04% to $102.03 a barrel on the New York Mercantile Exchange
- Brent for July delivery rose 0.06% to $107.12 a barrel on the ICE Futures Exchange in London
The futures remained under pressure as the IMF suggested the fighting in the Eastern Europe and the Middle East will boost upward pressure on the crude prices, which could detail the global economic recovery.
Oil prices slipped globally amid fears that Western government will launch further sanctions against Russia on the heels of the Malaysian jet crash last week.