Gold revives win streak as stock open looks uncertain, dollar slips


Gold futures advanced Tuesday, trying for what would be the fourth positive day in the past five sessions, as the dollar eased and a degree of uncertainty crept into a stock market that’s still holding near record highs.

Gold gained as stock-index futures pointed to a mixed start for Wall Street as investors await the kickoff of a two-day Federal Reserve meeting, as Chinese factory data showed some softening and as a flurry of corporate earnings included less-than-stellar results for Google-parent Alphabet

GOOGL, -7.53%

Moving inversely to gold, the ICE U.S. Dollar Index

DXY, -0.38%

which tracks the value of the buck against six of its trading rivals, was down 0.1%.

As such, gold for June delivery

GCM9, +0.34%

 rose $6.20, or 0.5%, at $1,287.70 an ounce. May silver

SIK9, +0.34%

rose 10 cents, or 0.7%, to $14.95 an ounce. July silver

SIN9, +0.11%

which is now the most-active contract, changed hands at $15.005, up 7 cents, or 0.5%.

Policy makers are fully expected to leave interest rates on hold come Wednesday’s conclusion of a two-day meeting, but the statement and remarks by Fed Chairman Jerome Powell will be closely watched for clues to the central bank’s future plans, after the panel abruptly paused its plan for rate increases in January and stopped the wind-down of its balance sheet.

Read: Powell faces tough test Wednesday as market is uneasy with his recent communication

On the economic front, the employment cost index for the first quarter is due at 8:30 a.m. Eastern Time, with economists surveyed by MarketWatch looking for a 0.7% rise. The Case-Shiller house price index for February is due at 9 a.m. while the Chicago-area purchasing managers index for April is set for release t 9:45 a.m.

At 10 a.m., investors will see an April consumer confidence index, which is forecast to rise to 126.9 from 124.1 in March. A pending home sales index for March is also due at the same time.

Meanwhile, a private gauge of China factory activity weakened in April but still showed expansion, in line with official data that also showed slower growth, a likely boost to haven gold.

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Source : MTV