Gold futures rose Thursday, building on gains in the previous session ahead of a batch of U.S. data that will likely give the Federal Reserve more insight into the pace of economic recovery.
Gold for December delivery tacked on $7.50, or 0.6%, to $1,340.90 an ounce.
Gold futures on Wednesday had climbed by $12.90, or 1%, on the Comex division of the New York Mercantile Exchange, nearly recouping their loss in the previous session.
“An upside corrective technical bounce after Tuesday’s selling pressure and some bargain hunting were featured,” wrote Kitco.com senior analyst Jim Wycoff in a note Wednesday. “Traders are awaiting fresh, significant fundamental inputs for the gold and silver markets.”
Gold prices on Wednesday reached their intraday highs “as equities declined on the day, and as events in Egypt triggered some safe-haven interest,” said Scotiabank strategist Russell Browne to clients.
More than 230 people died and at least 2,000 were injured across Egypt, according to media reports, as police broke up protest camps made by supporters of Mohammed Morsi, who was ousted as Egypt’s president in early July.
Egypt’s interim Vice President Mohamed ElBaradei resigned Wednesday, indicating in a letter to interim President Adly Mansour that he opposed the government’s use of force to break up the camps.
Silver prices on Thursday stretched gains into a sixth consecutive session, with silver for September delivery higher by 36 cents, or 1.7%, to $22.15 an ounce.
Silver hadn’t traded above $22 an ounce in two months, according to FactSet, and analysts have attributed the recent advance to strong physical demand and expectations for further signs of strengthening in the global economy.
Metals investors will receive a handful of U.S. reports on Thursday, with financial markets waiting for word from the Federal Reserve about when it plans to taper monetary stimulus, which has been seen as supportive for gold prices.
Among the data, the Labor Department is due to report on July consumer prices and weekly jobless claims. The unemployment claims are expected to hold steady from the previous week, keeping them at a near five-year low at 333,000.
Meanwhile, the Philadelphia Fed’s survey of manufacturers is expected to show a reading of 15.0 for August, according to a MarketWatch poll of economists. In July, the index surged to a two-year high at 19.8.
Elsewhere in the metals complex Thursday, October platinum gained $11, or 0.7%, to $1,516.60 an ounce, and September palladium rose $4.85, or 0.7%, to $745.20 an ounce.
Copper for September delivery was on par with Wednesday’s level at $3.34 a pound.
Source : Marketwatch
