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Gold price shows a moderate growth after a decline on the eve associated with the strengthening of the dollar.
Today, the U.S. dollar shows a reverse trend after weak data on activity in the U.S. service sector. Data released on Wednesday by the Institute for Supply Management (ISM), showed that the rate of growth of activity in the U.S. non-manufacturing sector slowed in June, but employment grew. Reported Purchasing Managers Index (PMI) for the non-production sphere of the United States in June fell to 52.2 from 53.7 in May. Economists had forecast the index in June was 54.3. . Reading above 50 indicates expanding activity.
Investors are closely watching the changes in the monetary policy of both the United States and in other countries, as well as studying the economic data in the U.S. seeking guidance regarding the fate of the Fed's stimulus program.
Gold prices have been supported by the stimulus the Fed. Investors feared that the bond purchases will lead to higher inflation and a weakening dollar invested in precious metals as a hedge. However, most recently, fears that the Fed will soon complete these programs lowered the price of gold to near 3-year lows as traders were concerned about a possible decline in demand in the absence of these risks.
The cost of the August gold futures on COMEX today rose to 1259.30 dollars an ounce.
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