Gold Futures Settle At One-week High

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Gold prices rose sharply on Wednesday and the most active futures contract posted a one-week closing high, as traders looked ahead to Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium on Thursday.

Powell’s speech, which is scheduled to begin before trading hours on Thursday, is expected to provide clues about Fed’s monetary policy, and the central bank’s approach towards inflation.

Data showing a much bigger than expected increase in U.S. durable goods orders in the month of July limited gold’s uptick.

The dollar index, which was up notably at 93.36 in the morning, slipped to a low of 92.85 around mid afternoon before edging up to 92.99, down marginally from previous close.

Gold futures for December ended up $29.50 or about 1.5% at $1,952.50 an ounce, the highest settlement since last Wednesday. The contract touched a low of $1,908.40 an ounce earlier in the session.

Silver futures for September gained $1.18 or about 4.4% to settle at $27.449 an ounce, while Copper futures for September climbed up 0.9% to $2.9615 per pound.

According to data released by the Labor Department, new orders for U.S. manufactured durable goods spiked by much more than expected in the month of July. The report said durable goods orders skyrocketed by 11.2% in July after surging up by a revised 7.7% in June.

Economists had expected durable goods orders to increase by 4.3% compared to the 7.6% jump that had been reported for the previous month.

The material has been provided by InstaForex Company – www.instaforex.com

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