Gold prices move higher but upside seen limited

By Investing.com / May 26, 2017 / in.investing.com / Article Link

Investing.com - Gold prices moved higher on Friday, but gains were expected to remain limited as the greenback recovered from recent losses posted after the release of the minutes of the Federal Reserve's meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.43% at $1,261.83.

The June contract ended Thursday's session 0.26% higher at $1,256.40 an ounce.

Futures were likely to find support at $1,247.60, the low of May 24 and resistance at $1,263.80, the high of May 23.

The greenback regained some ground thanks to Thursday's better than expected U.S. initial jobless claims data.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.09% at 97.24.

A stronger U.S. dollar usually weighs on gold, as it weakens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

The data came a day after the minutes of the Fed's May meeting showed that the central bank plans to unwind its balance sheet towards the end of the year, possibly using a system where cap limits are implemented on how much the Fed would roll off every month without reinvesting.

The Fed also signaled that interest rates could be raised soon, but added that "it would be prudent" to wait for more U.S. economic data.

Market participants were looking ahead to U.S. data on durable goods orders, first-quarter economic growth and consumer sentiment due later in the day.

Elsewhere in metals trading, silver futures for July delivery rose 0.23% to $17.233 a troy ounce, while copper futures for July delivery were steady at $2.598 a pound.

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