Investing.com - Gold futures spiked to the highest levels of the session on Monday, after data showed that the U.S. manufacturing sector contracted unexpectedly in May, underlining concerns over the U.S. economic recovery.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,401.25 a troy ounce during U.S. morning hours, up 0.6% on the day.
Comex gold prices held in a range between USD1,388.55 a troy ounce, the daily low and a session high of USD1,402.25 a troy ounce.
Gold futures were likely to find support at USD1,353.55 a troy ounce, the low from May 22 and resistance at USD1,421.25, the high from May 31 and a two-week high.
The Institute for Supply Management said in a report earlier that its index of purchasing managers fell to 49.0 in May from a reading of 50.7 in April.
Analysts had expected the ISM index of purchasing managers to hold steady at 50.7 last month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The disappointing data dampened expectations that the Federal Reserve will begin to scale back its USD85 billion a month asset purchase program this year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.
Investors are now looking ahead to the release of a closely watched report on U.S. nonfarm payrolls on Friday for further hints regarding the direction of U.S. monetary policy.
Elsewhere on the Comex, silver for July delivery rallied 1.45% to trade at USD22.56 a troy ounce, while copper for July delivery added 0.5% to trade at USD3.309 a pound.
Copper prices were supported as stronger-than-expected Chinese manufacturing data bolstered demand for growth-linked assets.
Official data on Sunday showed that China’s manufacturing purchasing managers’ index rose to 50.8 in May from 50.6 in April.
Earlier Monday, a separate report showed that China’s HSBC manufacturing PMI slid down to 49.2 in May, the lowest level since October 2012, from 49.6 in April.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,401.25 a troy ounce during U.S. morning hours, up 0.6% on the day.
Comex gold prices held in a range between USD1,388.55 a troy ounce, the daily low and a session high of USD1,402.25 a troy ounce.
Gold futures were likely to find support at USD1,353.55 a troy ounce, the low from May 22 and resistance at USD1,421.25, the high from May 31 and a two-week high.
The Institute for Supply Management said in a report earlier that its index of purchasing managers fell to 49.0 in May from a reading of 50.7 in April.
Analysts had expected the ISM index of purchasing managers to hold steady at 50.7 last month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The disappointing data dampened expectations that the Federal Reserve will begin to scale back its USD85 billion a month asset purchase program this year.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Federal Reserve would end its bond-buying program sooner-than-expected.
Investors are now looking ahead to the release of a closely watched report on U.S. nonfarm payrolls on Friday for further hints regarding the direction of U.S. monetary policy.
Elsewhere on the Comex, silver for July delivery rallied 1.45% to trade at USD22.56 a troy ounce, while copper for July delivery added 0.5% to trade at USD3.309 a pound.
Copper prices were supported as stronger-than-expected Chinese manufacturing data bolstered demand for growth-linked assets.
Official data on Sunday showed that China’s manufacturing purchasing managers’ index rose to 50.8 in May from 50.6 in April.
Earlier Monday, a separate report showed that China’s HSBC manufacturing PMI slid down to 49.2 in May, the lowest level since October 2012, from 49.6 in April.