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Gold rises as traders increase bullish bets

Published 05/05/2013, 08:45 PM
Updated 05/05/2013, 08:46 PM
Investing.com - Gold futures rose to start the new week in Asia as traders are seen increasing their bullish bets on the yellow metal.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.38% to USD1,469.95 per troy ounce in Asian trading Monday. Gold rose 0.55% last week, good for the metal’s second straight weekly advance.

Gold prices were likely to find support at USD1,439.75 a troy ounce, the low from April 25 and near-term resistance at USD1,487.15, Friday’s high.

Gold also got some help Monday from encouraging data out of the U.S. In economic news published last Friday, the U.S. Labor Department said 165,000 new jobs were created last month, topping expectations calling for the addition of 140,000 jobs. The U.S. unemployment rate fell to 7.5% from 7.6%.

The Institute for Supply Management's services index fell to 53.1% last month from 54.4% in March. Economists expected an April reading of 53.7%. Readings above 50% indicate expansion.

Data indicate traders are boosting long bets on bullion. According to data from the U.S. Commodities Futures Trading Commission, traders raised their long bets on gold by 19% 54,762 futures and options contracts through April 30. Short bets fell 9.2%.

Elsewhere, famed value investor Warren Buffett remains unimpressed by gold. Buffett, speaking from Berkshire Hathaway’s annual meeting over the weekend, told attendees that he would not buy gold even if it fell to USD800 an ounce.

Meanwhile, Comex silver for July delivery jumped 1% to USD24.255 per ounce while copper for July delivery added 0.52% to 3.324 per ounce.


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