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Gold futures gain ground on softer dollar

Published 05/22/2015, 02:55 AM
Gold futures rise as U.S. dollar weakens

Investing.com - Gold prices were higher in European morning hours on Friday, as demand for the greenback weakened broadly after the release of downbeat U.S. data on Thursday and as investors eyed a fresh U.S. economic report later in the day.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.31% at $1,207.80.

The June contract ended Thursday's session 0.38% lower at $1,204.10 an ounce.

Futures were likely to find support at $1,190.40, the low from May 13 and resistance at $1,225.50, the high from May 19.

The dollar came under broad selling pressure after a string of downbeat U.S. economic reports on Thursday fuelled fresh uncertainty over the strength of the recovery.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 16 rose more than expected by 10,000 to 274,000 from the previous week's total of 264,000.

Separately, the National Association of Realtors said that existing home sales fell unexpectedly by 3.3% in April to 5.04 million units from the previous month's revised total of 5.21 million units.

In addition, the Federal Reserve Bank of Philadelphia said that its manufacturing index declined to 6.7 this month from a reading of 7.5 in April, confounding expectations for a rise to 8.0.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.40% to 95.09 in early European trade.

Investors were now looking ahead to U.S. inflation data and a speech by Federal Reserve Chair Janet Yellen due later in the day for fresh indications on how the economy is performing.

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Elsewhere in metals trading, silver futures for July delivery gained 0.47% to $17.212 a troy ounce, while copper futures for July delivery inched up 0.01% to $2.850 a pound.

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