• Gold prices rose for a fourth day on Tuesday as the dollar eased on signs of slower economic activity in the United States that dented expectations of an aggressive string of interest rate hikes by the U.S. Federal Reserve.
Spot gold gained 0.3 percent at $1,233 per ounce at 0403 GMT. On Monday, it touched its highest since May4 at $1,237.26.
• The New York Federal Reserve bank said on Monday its Empire State Manufacturing Activity index, a report on business activity in the state, unexpectedly fell in May, sinking into negative territory for the first time since October. The weaker-than-expected report could be a harbinger a possible deterioration in the U.S. manufacturing sector.
• "In the shorter term it (weaker U.S. data) could lift gold prices to a certain extent as it ensures the pace of the interest rate hikes do not accelerate," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
Risk aversion sentiment due to recent global developments including the North Korean missile test, the massive "ransomware" cyber attack and controversies surrounding U.S. President Donald Trump could lift gold prices over the next two weeks, Wing Fung's To added.
• Expectations of a U.S. rate increase in June fell to percent compared to percent last week, according to the CME Fedwatch.7484
• Spot gold may rise more to $1,245 per ounce, as it has cleared a resistance at $1,233, according to Reuters technical analyst Wang Tao.
• Among other precious metals, silver rose 0.6 percent at $16.69 an ounce.
Reference: Reuters
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