Gold price above US$1,200 on flat US data

New York (Jun 1)  The move back above US$1,200 continues a trend that has seen the gold price swing above and below its 2015 start date ten times already this year. In euro terms, gold trades at around €1,084 per troy ounce. 

Gold back above US$1,200

Gold moved higher as the situation in Greece seemed moved towards a climax, while more mixed US economic data undermined the prospect of rate rises soon.

Spot gold added US$13 to US$1,203, while futures were also in demand as US consumer demand was flat in April as was inflation.

Talk recently has been of a surprise rise in US interest rates, but recent weak data has tempered that speculation.

The move back above US$1,200 continues a trend that has seen the gold price swing above and below its 2015 start date ten times already this year.

In euro terms, gold is trading at about €1,085 per troy ounce.

After an expansion in net long positions in gold last week, positions were cut by 16% to 66,200 contracts in the week to 26 May, said Commerzbank, during which time the gold price dipped by 1.7%. 

The German broker also noted that gold demand in the US had also been weak recently, with gold coin sales at a three-month low of 21,500 ounces.

Commerzbank had already reported that Chinese gold demand has also been sluggish recently.

Silver rose to US$17.06, while platinum bounced US$9 to US$1,117.

Source: ProactiveInvestor