RTTN: Gold Rebounds To 7-week High Amid Economic Woes
(RTTNews) - The price of gold moved back to its 7-week high Wednesday morning amid safe-haven buying.
Gold for December delivery, the most actively traded contract, was up $3.30 to $1,236.70 an ounce. Yesterday, gold oscillated between $1,237 and $1,211 before settling at $1,233.40, after data revealed that the existing home sales in the U.S. dived to a 15-year low in July.
Tuesday, the National Association of Realtors said existing home sales fell by 27% to an annual rate of 3.83 million units in July, belying economists expectations for a drop of only about 12% to 4.72 million units.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 1,297.95 tons from 1,299.47 tons.
Meanwhile, the U.S. dollar was leveling off from its highest level in a month against the euro and trading flat versus sterling. The euro edged up after the Ifo business climate index surprisingly rose to 106.7 in August from 106.2 in July, belying forecasts for a drop to 105.7.
The buck was recovering from its overnight losses versus the yen amid speculation that Japan may intervene to stem the yen's rise.
Elsewhere, the price of silver ticked higher and platinum was almost flat in morning deals.
Traders will look to the data on durable goods order and new homesales for July from the U.S., due out later today, to get more guidance on the strength of the economy.
