gold futures news

gold futures news

August 8th, 2016

Gold edges lower but weaker dollar lends support Gold edges lower but weaker dollar lends support – Gold prices slipped lower on Friday, but losses were expected to remain limited as a globally weaker U.S. dollar continued to lend support to the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.16% at $1,339.35, not far from Wednesday’s three-week high of $1,350.50.

The December contract ended Thursday’s session 0.56% lower at $1,341.60 an ounce.

Futures were likely to find support at $1,323.20, the low from September 6 and resistance at $1,350.50, Wednesday’s high.

Gold prices weakened briefly after data on Thursday showing that U.S. initial jobless claims in the week ending September 3 decreased by 4,000 to a six-week low of 259,000 from the previous week’s total of 263,000. Analysts expected jobless claims to rise by 2,000 to 265,000 last week.

But sentiment on the greenback remained vulnerable after downbeat U.S. employment data published last Friday crushed expectations for an upcoming rate hike by the Federal Reserve.

Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Markets were also digesting the European Central Bank’s most recent policy statement, as the ECB raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6% on Thursday.

At the conclusion of the bank’s policy meeting, ECB President Mario Draghi said current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.

The comments came after the central bank left its benchmark interest rate at a record-low 0.0%, in line with market expectations.

Draghi added that interest rates would remain at present or lower levels for an “extended time” so the recovery would not be derailed.

Elsewhere in metals trading, silver futures for December delivery declined 0.46% at $19.587 a troy ounce, while copper futures for December delivery edged down 0.10% to $2.099 a pound.