Forexpros –
Forexpros – Gold futures moved modestly higher in Asian trade Friday, lifted by a weaker dollar but with gains tempered by a European plan to address the region’s debt crisis and a better than expected performance from the U.S. economy.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,745.65 a troy ounce during early Asian trade, gaining 0.09%, after hitting a low of USDS1,742.35.
Following a second summit in four days, European leaders presented their long-awaited plan to address regional debt threats with an expansion of their rescue fund, and an agreement from private investors to take a 50% write-down in their holdings of Greek government debt.
Officials agreed to expand the European Financial Stability Facility to USD1.4 trillion by persuading bondholders to accrue losses on Greek debt as well a recapitalization of European banks. The deal includes the possibility of an enhanced role for the International Monetary Fund to strengthen the bailout fund.
Later Thursday, the U.S. Bureau of Economic Analysis reported that gross domestic product expanded by 2.5% in the third quarter, slightly above an anticipated 2.4% gain and the fastest pace since the third quarter of last year.
Separately, the U.S. Department of Labor said that the number of Americans filing for initial jobless benefits fell by 2,000 to a seasonally adjusted 402,000 for the week ending October 22.
Market expectations were for a decline to 400,000 for the week.
Wall Street shares rallied on the news from Europe and the surprising GDP numbers, as the Dow Jones Industrial Average gained 2.86% to 12,208.50, the Nasdaq Composite Index surged 3.32% to 2,738.63, and the S&P 500 leapt 3.43% to close at 1,284.59.
A lower dollar helped to support gold futures, as a weaker greenback makes gold futures purchases less expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.02% to 75.10.
On the Comex, silver for December delivery advanced 0.36% to trade at USD35.19 a troy ounce, while copper for December delivery fell 0.14% to trade at USD3.699 a pound.
Forexpros
