Gold Jumps on Weak US Productivity Numbers

Gold futures gained on Wednesday to close at their highest level in last month in reaction to lower than expected US productivity data which resulted into weaker greenback. Moreover investors were also optimistic on the ECB’s decision to go for monetary policy to curb the region’s economic crisis.

Gold futures contract for August delivery gained 1.1 percent or $17.30 to settle at $1,634.20 per ounce on the Comex division of the New York Mercantile Exchange. Analysts were still concerned that whether the current precious metal move is just a relief rally or it is about to touch its all time high.

The lower greenback also came in support for commodities as the weaker US dollar makes the gold less expensive for investors holding foreign currencies. The dollar index DXY which tracks the greenback’s performance versus its major counterparts fell to 82.268 on Wednesday as compared to 82.801 on Tuesday’s late trading hours.

Among other base metals, silver posted the highest gains silver futures contract for the July delivery surged 3.8 percent or $1.08 to settle at $29.49 per ounce. Copper futures contract for the same month gained 2.7 percent or $0.09 to settle at $3.38 per pound.

Platinum futures contract surged 2 percent or $28.70 to $1,469.20 per ounce while it sister metal palladium futures contract for September delivery climbed 2.1 percent or $13 to $632.80 per ounce.

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