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Gold rises as traders reconfigure their positions

Xinhua, January 4, 2017 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as traders reconfigured their positions during the first couple of trading hours of the new year.

The most active gold contract for February delivery rose 10.3 U.S. dollars, or 0.89 percent, to settle at 1,162.00 dollars per ounce.

Investors are in the process of taking long-term positions and covering shorts, giving the precious metal giving a temporary boost during the first trading day of the new year.

Gold was prevented from rising further as a report released on Tuesday by U.S.-based Markit Economics showed the PMI manufacturing index increasing to a 54.3 level during the month of December. Analysts note that new orders and production were both better-than-expected and that hiring is strong as well.

The precious metal was put under further pressure as a report released on Tuesday by the U.S.-based Institute for Supply Management showed the ISM manufacturing index at a 54.7 level, a figure which was on the high end of expectations. Analysts note that new orders increased to 60.2 which is the highest reading of this measure in two years.

The U.S. dollar also put pressure on gold as the U.S. Dollar Index rose by 0.91 to 103.23 as of 1900 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.

Traders are looking to the week ahead for the ADP employment report on Wednesday, weekly jobless claims on Thursday, and the big jobs report and international trade report on Friday.

Silver for March delivery added 42 cents, or 2.63 percent, to close at 16.409 dollars per ounce. Platinum for April delivery rose 38.5 dollars, or 4.25 percent, to close at 944.20 dollars per ounce. Enditem