Gold prices are stable on the eve of US statistics report

14.08.2015

On Friday, gold prices are stable, as investors took a wait on the eve of today's publication of a series of US economic data to get further guidance on the economic strength.

On Comex division of the New York Mercantile Exchange, gold futures for December delivery continued to be traded at $ 1111.50.

The December contract closed the Thursday session with a 0.71% reduction to $ 1115.60 per ounce.

Futures are likely to find support at $ 1101.10, the low of August 12, and resistance at $ 1126.30, the high of Thursday.

Gold prices came under pressure after the release of data showing that the number of applications for unemployment benefits in the US last week rose more than expected, but still kept at the lowest level since November 1973.

The US Labor Department said the number of persons who filed for initial unemployment benefits rose by 5000 in the last week to 274 000 from 269 000 the previous week.

Market participants are being prepared for publication later in the session, US data on producer prices, industrial production and consumer sentiment amid lingering expectations of a rate hike in September.

Gold is under strong selling pressure in recent months amid speculation that in September, the Federal Reserve will raise interest rates for the first time since 2006.

The expectations of increase in interest on loans have a negative impact on the precious metal because it cannot compete with the profitable assets in a period of growing rate.

Silver futures for September delivery are traded at $ 15.400 for a troy ounce, while copper futures for September delivery fell 0.42% to $ 2343 per pound.

Back Next suggested article