Comex Gold Jumps Past $1300 On Weak Data: Neal Bhai 14-Feb-2014

0
2

images (8)Gold futures jumped past $ 1300 an ounce in the Asia electronic session today buoyed by the weak data releases from US as it reinforce the investors that Fed will take a slower approach to tapering its bond purchases.

The disappointing U.S. retail sales data weighed on the dollar yesterday increasing the appeal for bullion. U.S. retail sales fell 0.4% in January. Initial weekly jobless claims rose by 8,000 to 339,000, missing forecasts for a decline to 330,000.

The ICE dollar index, which tracks the greenback against six other currencies, declined to 80.308 from 80.718 late Wednesday.

Meanwhile, the British pound rose further on Thursday after touching the highest level in three weeks on Wednesday, to $1.6660 from $1.6587 late Wednesday.

Recent U.S. economic data, including two straight months of weak jobs growth, have raised questions over whether the world’s biggest economy can sustain growth and made some investors hope the Fed would take a slower approach to tapering its bond purchases.

U.S. COMEX gold futures for April delivery are trading up $1304.4 at $ 4.3 an ounce on COMEX division of New York Mercantile Exchange. Yesterday, it settled up $5.10 at $1,300.10 an ounce.

On the economic front today, China’s consumer inflation rate held steady in January, while wholesale prices fell at a faster rate than in January. The consumer price index rose 2.5% from a year earlier, or 1% on a monthly basis, as pork, beef and vegetable prices all rose. The producer price index, meanwhile, fell 1.6% from a year earlier — the largest drop since August — and was 0.1% below that of a month earlier. This compared to a 1.4% fall in December, when prices were flat on a monthly basis.