The relatively weak economic data the US released today weakened the USD. Thus, gold gained some fair support until Friday’s economic data released.
Comex gold futures closed the US day session with meek gains today. Most traders and investors are waiting impatiently for tomorrow, Thursday, ECB meeting in Europe and the US weekly jobless claims. More importantly, the non-farm payrolls and unemployment rate in May are due to be announced on Friday.
On the daily chart, gold price moved sideways. Comex gold futures for August delivery price were up by $3.90 to be traded at $1,401.10/ounce. Gold price on the spot market was up by $1.60 to be traded at $1,402.
The US Automatic Data Processing (ADP) employment report showed a weaker than expected growth. The beige book report was disappointing, as the market waited to have a clearer view on the end of the QE program.
The Japanese stock market was down today as well, recording 18% loss from late May. Still, the Japanese stock market gained more than 30% since Abe Shinzo, the Japanese Prime Minster, started his aggressive monetary policy to counter deflation and end the Japanese “Lost Decade”.
The European economic data released implied a struggle against recession and more effort is needed.
London PM gold price fix today was at $1,404, compared to the AM gold fix at $1,396.50.