Gold Futures Edge Higher After Data Deluge
Gold futures edged higher in Asian trading hours Monday, as investors grappled a slew of mixed economic data from around the globe.
February gold rose $2.00 to $1,707.50 an ounce in electronic trading on the Comex division of the New York Mercantile Exchange.
Gold futures finished higher on Friday, when traders confronted data giving contrasting signals on the U.S. economy. Read: Gold futures edge up, but post weekly loss
Sunday saw Chinese data, including industrial production and retail sales, presenting a mostly positive picture of the Chinese economy to investors. However, Monday’s data on trade disappointed.
Barclays Capital strategists said market fatigue and profit-taking have pressured gold prices to one-month lows recently but also said they “believe the risks for gold are most skewed to the upside.”
The dollar is likely to see renewed weakness on a likely limited resolution to U.S. fiscal cliff talks, which the analysts expect will set the stage for contentious fiscal negotiations in the first half of 2013. Gold prices and the dollar often move inversely.
In addition, the strategists said buying in China has mostly materialized amid rising prices this year, “thus buying upon price dips should provide a better floor for prices.”
They also cited a continued rise in gold imports into Turkey, as well as central bank activity which “remains firmly on the buy side.”
Around the wider metals complex Monday, silver for March delivery rose 12 cents to $33.26 an ounce, March palladium advanced $2.55 to $700.55 an ounce, and January platinum rose $5.40 to $1,612,40 an ounce.
March copper rose 3 cents to $3.69 a pound.
Marketwatch
