By Investing.com | Commodities News | May 20, 2013 07:13PM GMT
Investing.com - Gold prices rose in U.S. trading on Monday after Japan's economy minister warned that further depreciation of the yen could harm the country's economy, which fueled demand for Japan's currency and weakened the greenback.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.73% at USD1,388.35 a troy ounce in U.S. trading on Monday, up from a session low of USD1,337.75 and down from a high of USD1,395.35 a troy ounce.
Gold futures were likely to test support USD1,323.00 a troy ounce, the low from April 16, and resistance at USD1,444.15, Tuesday's high.
The dollar fell on Monday after Japanese Economy Minister Akira Amari said that further depreciation of the yen could harm the economy.
The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008.
Amari's comments sparked demand for the yen that came at the dollar's expense and brought up gold prices in a quiet session with little in the way of economic indicators or other steering currents.
The dollar, meanwhile, saw some support in wake of Friday's consumer sentiment data, though gold prices shot up on their own.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment index rose to 83.7 in May from 76.4 in April, blowing past expectations for a rise to 78.0.
The numbers came after Federal Reserve officials suggested last week that the U.S. central bank may begin to unwind stimulus programs this summer and possibly end such policies by year end.
Monetary stimulus tools, such as low interest rates, dovish language and the Fed's monthly USD85 billion asset-purchasing program, weaken the dollar to spur recovery, which makes gold an attractive hedge.
Elsewhere on the Comex, silver for July delivery was up 1.91% at USD22.780 a troy ounce, while copper for July delivery was up 0.90% and trading at USD3.353 a pound.
http://www.investing.com/news/commodities-news/gold-gains-as-japanese-minister-comments-on-yen-weaken-dollar-248007
Investing.com - Gold prices rose in U.S. trading on Monday after Japan's economy minister warned that further depreciation of the yen could harm the country's economy, which fueled demand for Japan's currency and weakened the greenback.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.73% at USD1,388.35 a troy ounce in U.S. trading on Monday, up from a session low of USD1,337.75 and down from a high of USD1,395.35 a troy ounce.
Gold futures were likely to test support USD1,323.00 a troy ounce, the low from April 16, and resistance at USD1,444.15, Tuesday's high.
The dollar fell on Monday after Japanese Economy Minister Akira Amari said that further depreciation of the yen could harm the economy.
The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008.
Amari's comments sparked demand for the yen that came at the dollar's expense and brought up gold prices in a quiet session with little in the way of economic indicators or other steering currents.
The dollar, meanwhile, saw some support in wake of Friday's consumer sentiment data, though gold prices shot up on their own.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment index rose to 83.7 in May from 76.4 in April, blowing past expectations for a rise to 78.0.
The numbers came after Federal Reserve officials suggested last week that the U.S. central bank may begin to unwind stimulus programs this summer and possibly end such policies by year end.
Monetary stimulus tools, such as low interest rates, dovish language and the Fed's monthly USD85 billion asset-purchasing program, weaken the dollar to spur recovery, which makes gold an attractive hedge.
Elsewhere on the Comex, silver for July delivery was up 1.91% at USD22.780 a troy ounce, while copper for July delivery was up 0.90% and trading at USD3.353 a pound.
http://www.investing.com/news/commodities-news/gold-gains-as-japanese-minister-comments-on-yen-weaken-dollar-248007
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