The price of gold was lower on Tuesday following the surprisingly weak construction spending in the United Sates. The country’s manufacturing figures pressured the dollar index down, however it was pushed by an arrangement that prevented the closing of government.
U.S. gold futures were $12.80 to finish at $1,255.50 per ounce for their June delivery following its decline by 1 percent on the previous trade. Spot gold as well was lower; it fell by 0.97 percent to end at $1,255.39 per ounce.
Negotiators from the U.S. congress pummelled out a bipartisan compromise regarding a spending package to continue funding the federal government through September 30, this prevents the shutdown of the government and will diminish the demand for paying gold.
CIBC Capital Markets’ senior economist Royce Mendes said the ISM Manufacturing Index level now is a sign of healthy progress on the sector; however it is significant to witness that certain level on hold. Mendes added that the results in general were slightly worse than anticipated and he has seen the yields fall and the U.S. currency slacken.
According to a U.S. government figure shown last Friday, money supervisors have boosted their net long position in COMEX gold futures for six weeks straight to April 25.
Edward Meir, an INTL FCStone analyst, perceives that the yellow metal is keeping a correspondingly higher trading range for this month as the concerns surrounding the Korean Peninsula will command more attention. North Korea said that I will resume on testing nuclear weapons.
Meanwhile other precious metals also fell. Palladium was 0.97 percent lower to $815.50. Platinum dropped by 1.28 percent to $931.50. Spot silver edged down by 1.95 percent to $16.85 per ounce.