Gold Inches Higher on Softening US Dollar

Gold is trading marginally higher in the European markets, following small gains made in the Asian trading session. The yellow metal is 0.03% higher, or $0.42, with a troy ounce valued at $1271.72.

Gold

Gold Boosted by Mixed Data

 

The support for gold followed a mixed day of data releases from the US. Attracting the most interest was the US Budget Deficit hitting $90 billion in June, although rising Producer Prices and steady-if-not-soft, Jobless claims data all helped keep market sentiment risk averse.

Investors moved towards safe haven assets such as Gold while digesting the mixed bag of data from the world’s largest economy. Gold and the US Dollar normally trade inversely to each other. A strengthening US Dollar makes Dollar-priced commodities such as Gold more expensive and a less attractive investment.

Throughout the Asian trading session, gold stayed in positive territory, albeit very modest gains. The European trading session is seeing some buying action in the US Dollar. Investors are snapping up nicely priced positions following the losses in Asia and North America.

Meanwhile, Silver has not been enjoying any bounce following the weakened US Dollar. Silver is currently down 0.50%, with a troy ounce valued at $15.618. It would not be surprising to see  the yellow metal close the day in negative territory as gradually the declines in the US dollar are eroded by the growing support for the greenback.