Gold futures notch 8-wk high amid lackluster US dollar and economic data

Gold futures

Gold futures climbed on Tuesday session, settling at its highest level in almost eight weeks, on the back of weak economic figures and struggling US dollar.

After tallying its biggest monthly gain in five months, the spot gold continued its strong momentum after clinching 0.1% to end at $1 268.90 per ounce. The precious metal nabbed 2.2% gain last month.

Gold futures for December delivery, now the most active contract in the commodity market, grabbed $6, or 0.5%, to finish at its best settlement since June 8 at $1 279.40 per ounce.

The rally was once again supported by a decline in US dollar as the currency settled down 0.56% against its major rivals, with the euro settling at its 2 ½ year high versus the greenback at 1.1845.

A weaker dollar has made the precious metal attractive to investors as investors shift to safe-haven assets amid rising tensions on United States following its controversies involving Russia, North Korea, and Venezuela.

Meanwhile, the rise in gold on Tuesday was also backed up disappointing economic data, which provided lesser support on the possibility of another interest rate hike by the Federal Reserve this year.

The US government reported that the consumer spending for the month of June tumbled 0.1% while the country’s core inflation rose slightly by the same figure. The manufacturing activity index slipped to 56.3% in July.

Investors now look forward to the employment growth of the country as the non-farm payroll data will be released later this week.

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