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FX.co ★ Gold Futures Settle Modestly Higher As Dollar Retreats

Gold Futures Settle Modestly Higher As Dollar Retreats

Gold futures pared early losses and edged higher on Monday as the dollar came further off the 2-decade high recorded last week.

Worries about growth after data showed a contraction in China's industrial output, and a report showing an unexpected contraction in New York manufacturing activity in May boosted the demand for the safe-haven metal.

Data from the National Bureau of Statistics showed that China's industrial output contracted 2.9% year-on-year in April, missing expectations for an increase of 0.4% and down from 5% in March.

The dollar index dropped to 104.32 in the European session, and despite recovering to around 104.60 around late morning, drifted down again and was hovering around 104.40 a little while ago, netting a loss of nearly 0.2%.

Gold futures for June ended higher by $5.80 or about 0.3% at $1,814.00 an ounce.

Silver futures for July ended up by $0.550 at $21.551 an ounce, while Copper futures for July settled at $4.1915 per pound, gaining $0.0165.

In U.S. economic news, New York manufacturing activity unexpectedly contracted in the month of May, according to a report released by the Federal Reserve Bank of New York.

The New York Fed said its general business conditions index plunged to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.

Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.

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