Gold futures edged higher in Asian trading hours Monday, recovering a fraction of the heavy losses made by the precious metal at the end of last week.
Gold for December delivery advanced $1.10 to $1,725.20 on ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
On Friday, gold futures dropped by more than $20 an ounce, pressured by a stronger dollar after disappointing corporate-earnings and economic news sent investors into safe havens. Read more on dollar gains.
However, the ICE dollar index , which measures the greenback against a basket of six other currencies, eased back a bit Monday, trading at 79.523, down from 79.629 in late North American trading on Friday.
Still, the gains for gold may not last long, according to one broker.
While Friday’s economic data from the U.S. came in on the soft side, it followed a string of upbeat reports last week, notably on the housing market.
Deutsche Bank commodity strategists said that the recent “somewhat supportive” U.S. economic data has weighed on market sentiment for gold, “as early signs suggest that economic conditions may be normalizing.”
Gold prices could trade in a range over the next couple of months, they said.
“We see a vacuum in terms of monetary action due to upcoming transitions/decisions in government in both the U.S. and China,” the strategists said.
Around the wider metals complex, December silver rose 13 cents to $32.23 an ounce, while copper for December delivery rose 1 cent to $3.65 per pound.
Platinum for January delivery added $10.70 to $1,626.20 an ounce, while December palladium advanced $6.55 to $629.55 an ounce.
Marketwatch
