Gold edges higher amid weak economic data

3 August, 2017 12:00 AM printer

CHICAGO: Gold futures on the COMEX division of the New York Mercantile Exchange went up Tuesday amid weak economic data and political uncertainty in the White House.

The most active gold contract for December delivery rose six U.S. dollars, or 0.47 percent, to settle at 1,279.40 dollars per ounce, reports Xinhua.

Newly released weak economic data led to uncertainty about whether the U.S. Federal Reserve could continue its benchmark rate increase later this year, pushing up the gold prices, said analysts.

Official statistics showed that consumer spending rose just 0.1 percent in June, marking the smallest increase in 2017. Consumer spending accounts for more than two-thirds of economic activity, which is the engine of U.S. growth.

Income growth was flat in June and inflation rate for the 12 months ending in June stood at 1.4 percent, which declined 0.1 percentage point from last period ending in May.

Meanwhile, the Institute for Supply Management said its manufacturing index fell slightly to 56.3 percent in July after reaching a three-year high of 57.8 percent in June.

As for other precious metals, silver for September delivery rose 2.2 cents, or 0.13 percent, to close at 16.764 dollars per ounce. Platinum for October went up 8.8 dollars, or 0.94 percent, to settle at 949.50 dollars per ounce.