The yellow metal price rose slightly higher on Monday as investors outlook was affected by the weaker-than-expected US data from Friday. Gold edged to 0.10% to $1,389.10 per ounce at 4:45pm GMT.
Recommendation from the US Commodity Futures Trading Commission suggested that investors should cut their net long positions in gold futures by 4.1% to 54,779 contracts.
The US dollar index increased up to 0.14% to 80.786 as of 4:56pm GMT, while gold futures finished last week higher, closing at approximately 0.35% ($1,382.60).
The US consumer outlook dropped from its previous month’s record of 84.5 to 82.7 in June, according to data released from the UoM on Friday.
The US central bank has tied the bond purchasing program, which is helping to increase the gold prices to its highest in years and improving the labor market. Policymakers suggest that if the unemployment rate continues to reduce they would consider reducing the rate of the bond purchases, which is at a current $85 billion a month.
Fed policymakers are expected to even out the market swings at its upcoming two-day meeting from Tuesday. The Fed boss Ben Bernanke is expected to ease the effects of the global financial markets regarding an early cut of the QE program after the team on the Federal Open Market Committee (FOMC) approve more weeks of full bond-buying.
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