Gold futures snap four-day losing streak, settle notably higher

Gold futures settled higher on Monday, snapping a four-session losing streak, as the dollar turned easy and bond yields dropped after stock prices moved higher on recovery hopes.

Traders were also looking ahead to a slew of economic data due this week.

The dollar index drifted down to 90.87, giving up nearly 0.5 per cent.

Gold futures for June ended up by 24.10 dollars or about 1.4 per cent at 1,791.80 dollars an ounce. Silver futures for July ended higher by 1.087 dollars or 4.2 per cent at 26.960 dollars an ounce, while Copper futures for July settled at 4.5285 per pound, up 0.0605 cents or 1.35 per cent from the previous close.

Growth in U.S. manufacturing activity unexpectedly slowed in the month of April, according to a report released by the Institute for Supply Management on Monday. The ISM said its manufacturing PMI slid to 60.7 in April after jumping to a more than 37-year high of 64.7 in March.

A report from the Commerce Department showed U.S. construction spending rose by much less than expected in the month of March, rising by 0.2 per cent to an annual rate of 1.513 trillion dollars in March after falling by 0.6 per cent to a revised rate of 1.510 trillion dollars in February.

Economists had expected construction spending to spike by 2 per cent compared to the 0.8 per cent drop originally reported for the previous month.

In economic news from Europe, the Eurozone manufacturing activity logged a record expansion in April, albeit at a slower than previously estimated pace, final data from IHS Markit showed.

The manufacturing Purchasing Managers’ Index improved to 62.9 in April from 62.5 in March. The flash reading was 63.3. This was the highest level since June 1997 and the sector has expanded for the 10th straight month.

Source: GNA