News Column

Gold Ends Higher On Mixed Data, Weak Dollar

June 12, 2014

WASHINGTON (Alliance News) - Gold futures jumped for a fourth straight session to end at a near three-week high on Thursday, with investors opting for the safe haven of the precious metal as most global equity markets trended lower and the developments in Iraq. Gold also found support with the dollar trending lower against some major currencies.

Militants in Iraq surged ahead, taking control of two key cities -- Mosul and Tikrit, with reports indicating more attacks.

In some mixed economic data from the US, retail sales rose less than expected, while weekly initial claims for unemployment benefits increased. However, business inventories increased more than anticipated in April, while import and export prices showed modest increases in May.

Gold for August delivery, the most actively traded contract, jumped USD12.80 or 1.0% to close at USD1,274.00 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for August delivery scaled an intraday high of USD1,274.60 and a low of USD1,260.00 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 787.08 tons on Thursday, from its previous close.

The dollar index, which tracks the US unit against six major currencies, traded at 80.60 on Friday, down from its previous close of 80.77 late Wednesday in North American trade. The dollar scaled a high of 80.82 intraday and a low of 80.57.

The euro traded higher against the dollar at USD1.3561 on Thursday, as compared to its previous close of USD1.3532 late Wednesday in North American trade. The euro scaled a high of USD1.3565 intraday and a low of USD1.3512.

In economic news, US retail sales rose less than expected in May. The Commerce Department said on Thursday retail sales gained 0.3% last month. Retail sales rose by a revised 0.5% in April.

First-time claims for US unemployment benefits unexpectedly increased in the week ended June 7, a Labor Department report said Thursday. Initial jobless claims edged up to 317,000, an increase of 4,000 from the previous week's revised level of 313,000. Economists expected jobless claims to dip to 310,000 from the 312,000 originally reported for the previous week.

Business inventories in the US increased by more than anticipated in April, with inventories rising 0.6% in April following a 0.4% increase in March. Economists expected inventories to match the growth seen in the previous month.

Meanwhile, import and export prices in the US showed modest increases in May, as import prices inched up 0.1% in May after falling by a revised 0.5% in April. Import prices were expected to edge up by 0.2%. Export prices ticked up 0.1% in May following a 1.0% drop in the previous month. Economists expected export prices to rise by 0.2%.

From the Europe, euro area industrial production rose a seasonally adjusted 0.8% from March, when it fell 0.4%, which was downwardly revised from a 0.3% decline. The monthly growth in April was the strongest since November last year, when output rose 1.4%. Economists had forecast a 0.5% increase for April.

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Source: Alliance News

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