Gold higher but gains capped ahead of key U.S. data; Dollar lower vs commodity currencies

Gold higher but gains capped ahead of key U.S. data; Dollar lower vs commodity currencies

4 August 2015, 15:41
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On Tuesday gold prices edged higher in subdued trade, but held near a five-and-a-half year low amid ongoing expectations for a September U.S. rate hike.

Comex gold for December delivery added $3.90, or 0.36%, to trade at $1,093.30 a troy ounce during U.S. morning hours after dropping as much as 0.8% to a session trough of $1,080.30 overnight.

On Monday, gold declined $5.70, or 0.52%, to close at $1,089.40. On July 24 futures fell to a five-and-a-half year low of $1,072.30.

July this year has seen gold losing $79.50, or 6.72%, in July, the biggest monthly decline since June 2013.

Elsewhere in the metals sector, silver futures for September delivery climbed 8.5 cents, or 0.59%, to trade at $14.60 a troy ounce.

September copper added 2.3 cents, or 0.99%, to trade at $2.369 a pound during morning hours in New York.

In the currency market, the greenback was lower against commodity-linked and emerging-markets currencies Tuesday as oil prices rebounded and China’s stock market recorded a second day of gains, increasing appetite for risky assets.

The Aussie was the best-performing currency against the dollar Tuesday, rising 1.7% to 74 cents, its highest level in about two weeks. It traded at 72.73 cents late Monday in New York.

The Canadian dollar, Mexican peso and Brazilian real all traded higher against the dollar.

The ICE U.S. Dollar Index was lower 0.2% to 97.3170.

Investors will now expect data on U.S. factory orders at 10:00AM ET later in the day.

On Wednesday the ADP employment report, U.S. international trade data for June and the ISM non-manufacturing index - all will be on tap before the key nonfarm payrolls report due on Friday.

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