Gold soared on Friday and closed at its highest level in almost four months. August gold ended the day at $960.60, up $18.60 for the session. Prices hit as high as $969.00 in the mid-morning as traders turned to a hedge amidst record oil prices and a weakening U.S. dollar. MCX Gold August expiry contract also touched an all time high of Rs 13392 per 10 grams before closing at Rs 13324 per 10 grams up Rs 248, the same now trades at Rs 13357 per 10 grams. Supports for the contract are at 13250 while Resistances are at 13400 and 13500 levels.
The dollar extended this week's losses versus the euro and pound in Friday morning trading. Renewed concerns about the health of the US financial sectors have weighed on the dollar for the past few sessions. Gold usually moves opposite the dollar because of its hedge attraction.
On the economic front, the U.S. Commerce Department revealed that the country's trade deficit narrowed to $59.79 billion in May. This compared to revised shortfall of $60.50 billion in April. Economists had expected the trade deficit to widen during the month, projecting a figure of about $62.7 billion compared to April's original reading of $60.90 billion. Imports rose in May by 0.3%, climbing to a level of $217.3 billion. Exports grew by a faster rate, rising 0.9% to $157.6 billion.
The University of Michigan/Reuters consumer sentiment index came in at 56.6 for July, compared to a 56.4 in June. This is slightly better than analysts were expecting. Oil prices surged to a new record on Friday and bested the $147 a barrel mark before cooling later in the day. Oil touched as high as $147.27 in mid-morning deals, smashing the old intraday record of $145.86 from July 3.
The dollar extended this week's losses versus the euro and pound in Friday morning trading. Renewed concerns about the health of the US financial sectors have weighed on the dollar for the past few sessions. Gold usually moves opposite the dollar because of its hedge attraction.
On the economic front, the U.S. Commerce Department revealed that the country's trade deficit narrowed to $59.79 billion in May. This compared to revised shortfall of $60.50 billion in April. Economists had expected the trade deficit to widen during the month, projecting a figure of about $62.7 billion compared to April's original reading of $60.90 billion. Imports rose in May by 0.3%, climbing to a level of $217.3 billion. Exports grew by a faster rate, rising 0.9% to $157.6 billion.
The University of Michigan/Reuters consumer sentiment index came in at 56.6 for July, compared to a 56.4 in June. This is slightly better than analysts were expecting. Oil prices surged to a new record on Friday and bested the $147 a barrel mark before cooling later in the day. Oil touched as high as $147.27 in mid-morning deals, smashing the old intraday record of $145.86 from July 3.
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