Gold prices little changed, eyes on U.S. jobs data

By Investing.com / May 31, 2017 / in.investing.com / Article Link

Investing.com - Gold prices held steady on Wednesday, amid mounting expectations for a U.S. rate hike next month as investors awaited the release of key U.S. employment data later in the week.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were steady at $1,262.48.

The June contract ended Thursday's session 0.47% lower at $1,262.10 an ounce.

Futures were likely to find support at $1,252.60, the low of May 26 and resistance at $1,27.00, Tuesday's high.

The dollar weakened after data on Tuesday showed that the CB consumer confidence index fell to 117.9 in April, compared to expectations for a rise to 119.8.

However, the U.S. Commerce Department said consumer spending rose 0.4% last month, in line with economists' forecasts. It was the biggest increase in four months.

The greenback also remains under pressure amid fears investigations into President Donald Trump's ties with Russia could hamper his administration's progress on promised stimulus measures.

But growing expectations for a rate hike by the Federal Reserve at its June policy meeting continue to dampen demand for gold.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Elsewhere in metals trading, silver futures for July delivery declined 0.64% to $17.315 a troy ounce, while copper futures for July delivery was little changed at $2.563 a pound.

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