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MTECHTIPS:-Gold futures hit 2-day low as stronger dollar weighs
Gold futures slumped to a two-day low in early European trade on Wednesday, as the U.S. dollar strengthened broadly following upbeat U.S. manufacturing data, weighing on demand for the precious metal.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD16556.15 a troy ounce shedding 0.38%.Gold futures were likely to find support at USD1641.80 a troy ounce, the low of April 26 and resistance at USD1,671.18, Tuesday’s high and a more than two-week high.The greenback gained ground after a report on Tuesday showing that the U.S. manufacturing sector expanded at the fastest rate in 10 months in April eased concerns over the outlook for the economy.The Institute for Supply Management said its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
Gold futures slumped to a two-day low in early European trade on Wednesday, as the U.S. dollar strengthened broadly following upbeat U.S. manufacturing data, weighing on demand for the precious metal.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD16556.15 a troy ounce shedding 0.38%.Gold futures were likely to find support at USD1641.80 a troy ounce, the low of April 26 and resistance at USD1,671.18, Tuesday’s high and a more than two-week high.The greenback gained ground after a report on Tuesday showing that the U.S. manufacturing sector expanded at the fastest rate in 10 months in April eased concerns over the outlook for the economy.The Institute for Supply Management said its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
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