Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Gold ends month slightly higher amid weaker dollar, Greek debt impasse

Published 05/29/2015, 01:28 PM
Updated 05/29/2015, 01:36 PM
Gold ticked up on Friday by less than 0.15% to end the month at 1,190
DX
-
GC
-
HG
-

Investing.com -- Gold futures inched up on Friday extending modest gains from the previous session, as a basket of mixed U.S. economic data weighed on the dollar and a lack of progress with the Greek debt negotiations remained in focus.

On the Comex division of the New York Mercantile Exchange, gold for August delivery gained 1.60 or 0.13% to 1,190.40, ending the final session of May on a high note.

Gold futures traded in a tight of range of 1,186 on the low end and a high of 1,194.00, capping an abbreviated week headlined by Tuesday's plunge of 1.6% amid a resurgent dollar. For the month, the precious metal gained less than 1% wavering between a low of 1,168.40 on May 1 and a peak of 1,232.80 on May 18 when it surged to a three-month high. While the gains appear to be fairly reasonable, gold still finished with its best month since January when it soared more than 7.85%. In April, gold futures ticked up 0.07% after experiencing losses of 2.42 and 5.23% in March and February respectively.

Gold likely received support at 1,183.90 the low from May 27 and was met with resistance at 1,215.30, the high from May 22.

Gold spiked to a session-high on Friday after U.S. GDP for the first quarter was revised downward to minus 0.7% from an initial reading of 0.2%. The reading was in line with analysts' expectations of a downward revision of minus 0.8%. A surge in imports to 5.6% from an initial gain of 1.8%, linked to an abrupt unloading of imports at West Coast ports was thought to be responsible for the revision. A port work stoppage throughout the winter weighed on the U.S. economy in the first quarter. First quarter GDP was also sluggish in 2014, when it fell by 2.1% from the previous quarter. For the second quarter, U.S. GDP is expected to gain roughly 3% during the period as transitory factors recede.

Separately, a rebound over the last two weeks lifted the University of Michigan Consumer Sentiment Survey to 90.7, above a mid-month flash of 88.6. The reading is still down significantly from April's level of 95.9. Consumer expectations, meanwhile, fell to 84.2 from 88.8, illustrating diminished confidence in the long-term outlook of the labor market.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell 0.15% to 96.98.

Dollar-denominated commodities such as gold become more expensive for foreign purchasers.

Elsewhere, Greece's troika of creditors said late Thursday evening that a deal which would unlock critical aid to Athens was "not imminent," in spite of contrary reports. Earlier this week, Greece appeared hopeful a solution could be reached by Sunday.

Silver for July delivery gained 0.039 or 0.23% to 16.708 an ounce.

Copper for July delivery plunged 0.036 or 1.30% to 2.731 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.