Gold Recovers From 4-month Low

After suffering losses in recent sessions, gold was recovering from its four-month low Tuesday morning on value buying with the US dollar paring recent gains ahead of today’s macroeconomic data. Gold for December delivery, the most actively traded contract, gained $10.70 to $1,251.90 an ounce. Yesterday, gold settled lower, losing its safe haven appeal, after the six western powers and Iran reached an agreement on the Middle East country’s nuclear program.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, edged down to 848.91 tons from 852.21 tons. This morning, the U.S. dollar was hovering around its 2-week high versus the euro and trading weak against sterling. The buck was trading around its 6-month high versus the yen and ticking lower against the Swiss franc.
In economic news from the euro zone, Swedish factory prices declined for a sixteenth consecutive month running in October, data from Statistics Sweden revealed. The headline producer price index dropped 0.7 percent year-on-year in October following a 1.1 percent fall in September.
Elsewhere, the prices of silver and platinum were trading higher in morning deals. From the U.S., the Commerce Department will release the housing starts reports for September and October at 8:30 am ET. Economists expect housing starts to come in at a seasonally adjusted annual rate of 903,000 in September, while building permits are expected at 930,000. For October, economists estimate housing starts and building permits numbers of 905,000 and 930,000, respectively.
Later during the session, the Conference Board is due to release the results of its consumer confidence survey for November. The consensus estimates call for an increase in the consumer confidence index to 72.9 from 71.2 in October.
Source: RTT Staff Writer
Source:Bullion Bulletin

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