Forexpros – Gold futures traded higher Monday, as stronger than expected U.S. ISM numbers and word that the Indian jewelers strike had ended lifted demand for the yellowish metal.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,679.25 a troy ounce during U.S. trade, advancing 0.44%.
It earlier fell by as much as 0.45% to trade at a session low USD1,664.45 a troy ounce.
Gold futures were likely to find support at USD1,627.75 a troy ounce, the low from March 22 and resistance at USD1,699.55, the high from March 27.
Fuelling the precious metal’s advance, the U.S. Institute for Supply Management reported its index of purchasing managers rose by 1.0 point to 53.4 in March, up from a reading of 52.4 in February.
Analysts had expected the ISM index of purchasing managers to rise by 0.6 points to 53.0.
The better-than-expected data triggered gains across the broader commodity complex, with copper and silver futures adding to strong gains and oil prices also turning higher.
Meanwhile, word that Indian jewelers, one of the world’s largest gold markets are expected to reopen for business after a two-week strike provided further support. Analysts said the decision may revive demand in the world’s largest gold consumer in 2012.
Most Indian jewelry and gold shops have remained closed since March 18 after the country announced a 4% import duty hike on gold and a 0.3% excise tax on most gold jewelry.
Gold prices came under pressure earlier in the day, seeking cues from the currency market as muted physical demand in key Asian markets weighed on the precious metal.
Trading will likely be thin this week due to the Chinese holiday and the upcoming Easter holidays in many countries, analysts said.
Elsewhere on the Comex, silver for May delivery surged 1.7% to trade at USD33.03 a troy ounce, while copper for May delivery rallied 2.37% to trade at USD3.92 a pound.
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