Gold Snaps Six-Day Losing Streak To End Higher

(RTTNews) - Gold futures snapped a six-day losing streak to end slightly higher on Monday, after some mixed economic data from China, with investors awaiting some crucial reports later in the week. The precious metal also found support with declining U.S. and European equity markets and the dollar weakening against a basket of major currencies.

Gold for August delivery, the most actively traded contract, gained $0.50 to close at $1,244.50 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

Gold for June delivery scaled an intraday high of $1,247.90 and a low of $1,240.20 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 785.28 tons on Tuesday from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.51 on Tuesday, down from its previous close of 80.69 late Monday in North American trade. The dollar scaled a high of 80.66 intraday and a low of 80.43.

The euro traded higher against the dollar at $1.3632 on Tuesday, as compared to its previous close of $1.3597 late Monday in North American trade. The euro scaled a high of $1.3647 intraday and a low of $1.3590.

On the economic front, the from the U.S. Commerce Department showed new orders for U.S. manufactured goods rose by a more than expected 0.7 percent in April, after jumping an upwardly revised 1.5 percent in March. Economists expected orders to climb by about 0.5 percent compared to the 1.1 percent increase reported for the previous month.

According to a reading from HSBC, China's final HSBC Purchasing Managers Index stood at 49.4 in May, down from a preliminary estimate of 49.7. However, that was up from April's reading of 48.1.

Meanwhile, Chinese services sector activity rose to a six month high in May, with the index tracking non-manufacturing activity rising to 55.5, from 54.8 in the previous month.

According to flash estimates from Eurostat, eurozone inflation slowed more than expected in May, declining to 0.5 percent, raising concerns about deflationary pressures. Inflation held below the European Central Bank's target of 'below, but close to 2 percent' for the sixteenth consecutive month. The European Central Bank's monetary policy meeting scheduled for Thursday.

Meanwhile, eurozone unemployment rate declined unexpectedly in April, but still remains at a high level with companies cautious over adding staff and meet rising orders with existing employees. The seasonally adjusted jobless rate fell to 11.7 percent, the lowest since November 2011, from 11.8 percent in March. Economists expected the rate to hold steady at 11.8 percent for the fourth straight month. The number of unemployed totaled 18.751 million in April, down by 76,000 from March. The figure fell by 487,000 from a year-ago.

According to a reading from HSBC, China's final HSBC Purchasing Managers Index stood at 49.4 in May, down from a preliminary estimate of 49.7. However, that was up from April's reading of 48.1.

Meanwhile, Chinese services sector activity rose to a six month high in May, with the index tracking non-manufacturing activity rising to 55.5, from 54.8 in the previous month.