The price of gold was moving higher Wednesday morning, with the euro trading firm versus a basket of currencies after an indicator of euro zone private sector activity increased more than expected.
Gold for August delivery, the most actively traded contract, gained $8.50 to $1,343.20 an ounce. Yesterday, gold leveled-off from its one-month high to end lower on profit taking with little economic cues for direction, notwithstanding the dollar trading lower against a basket of major currencies. The precious metal had registered its biggest one-day gain in over a year in the previous session.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 929.76 tons from 931.26 tons.
Meanwhile, the U.S. dollar was leveling off from its one-month low versus the euro and sterling, while ticking lower against the Swiss franc and the yen.
In economic news, an indicator of euro zone private sector activity increased more than expected in July, a preliminary report from Markit Economics showed. The flash composite output index, that measures business activity in both manufacturing and services sectors, rose to an 18-month high of 50.4 in July from 48.7 in June. Economists had forecast the index to rise to 49.1.
German private sector business activity rose at the fastest pace in five months in July, preliminary results of a survey by Markit Economics showed. The composite output index, that measures performance of both manufacturing and services, rose to a five-month high of 52.8 in July from 50.4 in June. Readings above 50 indicates expansion in activity.
Elsewhere, the prices of silver and platinum were trading higher in morning deals.
From the U.S., the Commerce Department will release its new home sales report for June at 10 a.m. ET. Economists expect new home sales to come in at a seasonally adjusted rate of 481,000 units in June compared to a 476,000-rate in May.
