U.S. gold futures ended lower after trading in a tight range yesterday as bullion investors looked for a new catalyst from markets outside of the commodities sector to fuel the metal's recent rally amid inflation concerns. But down side was limited due to the dollar weakness. August futures did not fall further as the dollar hit a five-week low against major currencies after strong earnings from JP Morgan tarnished the U.S. currency's safe haven appeal.
But According to the report from U.S. Labour Department, jobless claims were down 47,000 last week to 522,000, the lowest since the first week of 2009. The big drop may have been distorted by unusual activity in the auto industry.
The Philadelphia Federal Reserve's regional index of manufacturing fell from -2.2 to -7.5 in July, weaker than expected.
On Wednesday, Gold rose to a two-week high above $940 an ounce as the dollar tumbled after data showed U.S. consumer prices rose faster than expected in June.
According to the U.S. Labour Department, consumer prices were up 0.7% in June, but down 1.4% from a year ago.
Weekly Outlook (DG. Aug.)
Expected trading range $903 – $920 .Breaking either side may clear the direction. Supports are $934, $948.Supports are $884 $864.
Last day DGCX Gold Aug Traded in the range $939.70-$932.90 and closed at $ 936.90
