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Gold up slightly on technical trading, India demand

Xinhua, November 16, 2016 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as technical trading and lower India demand gave support to the precious metal.

The most active gold contract for December delivery rose 2.8 U.S. dollars, or 0.23 percent, to settle at 1,224.50 dollars per ounce.

After touching a five month low, the precious metal has rebounded slightly in a technical bounce, aided by Indian Prime Minister Narendra Modi's reconfiguration of the Indian rupee.

Gold was prevented from rising further as a report released on Tuesday by the U.S. Census Department showed retail sales increasing by 0.8 percent, retail sales excluding automobiles increasing by 0.8 percent, and retail sales excluding automobiles and gas increasing by 0.6 percent, all during the month of October.

Analysts note that all three of these figures point to strong economic growth and they further indicate that this report will raise expectations for the fourth quarter gross domestic product report.

The U.S. Dollar Index rose by 0.26 percent to 100.22 as of 1830 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

The U.S. Dow Jones Industrial Average rose by 13 points, or 0.07 as of 1830 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Analysts note that many economic reports are due later this week. The producer price index and industrial production reports are due Wednesday, the consumer price index, housing starts, weekly jobless claims, Philadelphia Federal Reserve Business Outlook Survey are due on Thursday, and finally several Federal Reserve officials are scheduled to speak on Friday.

Silver for December delivery added 15 cents, or 0.89 percent, to close at 17.043 dollars per ounce. Platinum for January delivery rose 1.1 dollars, or 0.12 percent, to close at 934.70 dollars per ounce. Endit