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Gold edges higher ahead of busy week

Published 07/28/2014, 03:18 AM
Gold modestly higher as investors await key data later in the week
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Investing.com - Gold futures edged higher on Monday, as investors looked ahead to a series of key economic events later in the week for further indications on the strength of the U.S. economy and the future course of monetary policy.

On the Comex division of the New York Mercantile Exchange, gold for August delivery inched up 0.11%, or $1.40, to trade at $1,306.70 a troy ounce during European morning hours. Prices held in a tight range between $1,303.50 and $1,311.50.

Gold ended Friday’s session up 0.97%, or $12.50, to settle at $1,303.30 an ounce. Futures were likely to find support at $1,287.50, the low from July 24 and resistance at $1,316.80, the high from July 22.

Market participants were looking ahead to the Federal Reserve’s monetary policy statement due on Wednesday, amid speculation over when the central bank may start to raise interest rates.

Meanwhile, Wednesday’s preliminary estimate on second quarter economic growth and Friday’s U.S. jobs report for July were both expected to indicate that the recovery is continuing.

Gold remained supported as tensions between Russia and the West over the situation in Ukraine remained high, while fighting between Israel and Hamas militants in Gaza also remained in focus.

The precious metal is often seen as a haven investment in times of geopolitical uncertainty.

Also on the Comex, silver for September delivery tacked on 0.11%, or 2.2 cents, to trade at $20.65 a troy ounce.

Elsewhere in metals trading, copper for September delivery picked up 0.16%, or 0.5 cents, to trade at $3.246 a pound.

Data released earlier showed that profit at industrial companies in China increased by 17.9% in June from a year earlier, after gaining 8.9% in May, fuelling optimism over the health of the world's second largest economy.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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