Gold prices move higher amid U.S. political turmoil

By Investing.com / May 12, 2017 / in.investing.com / Article Link

Investing.com - Gold prices moved higher on Friday, as recent political events in the U.S. continued to weigh on the greenback and boost demand for safe-haven assets, although investors were also eyeing the release of U.S. data due later in the day.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.26% at $1,227.36.

The June contract ended Thursday's session 0.43% higher at $1,224.20 an ounce.

Futures were likely to find support at $1,214.30, the low of May 9 and resistance at $1,236.90, the high of May 8.

Markets were still jittery since U.S. President Donald Trump's unexpected decision to fire FBI Director James Comey.

Comey had been leading his agency's investigation into alleged Russian meddling in the 2016 U.S. presidential campaign and possible collusion with Trump's campaign.

Investors were concerned the latest events in Washington could hamper the U.S. administration's ability to implement promised tax reform and stimulus measures.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 99.48 on Friday morning.

A weaker U.S. dollar usually supports gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

However, the greenback was still supported by the release on Thursday of upbeat reports on initial jobless claims and producer price inflation, as well as by mounting expectations for a rate hike by the Federal Reserve next month.

Market participants were now looking ahead to upcoming data on U.S. inflation, retail sales and consumer sentiment, due later Friday.

Elsewhere in metals trading, silver futures for July delivery jumped 1.13% to $16.448 a troy ounce, while copper futures for July delivery rose 0.20% to $2.513 a pound.

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