Gold Plunges to Nearly-two-month Lows As Dollar Takes Off Following Factory Data
Jul, 03rd 15:01
Gold futures tumbled more than 1.6 percent on Monday after a private index on U.S. manufacturing activity, which was reported to rise to the highest level since mid-2014, boosted optimism over the U.S. economy and sent the U.S. stock market as well as the dollar higher.
Gold futures for August delivery plunged 1.62 percent to trade 1,222.80 in North American trading session. This was the lowest level since May 11th. The greenback was supported strongly by data released by the Institute for Supply Management (ISM) which showed the gauge for domestic manufacturing activity advanced to 57.8 last month from May’s reading of 54.9.
Spurred by the new orders index that rose to 63.5 in June from 59.5 a month earlier, the figure did not only top analysts’ forecast for an increase to just 55.2 but also marked the fastest growth pace in almost three years.
Meanwhile, the so-called safe-haven asset lost its attraction as equity markets kicked off July trade on a positive note. Indeed, led by firm gains in the energy and financials sector which soared at least 1 percent, the S&P 500 index advanced nearly 0.6 percent. The Dow Jones Industrial Average index and the Nasdaq Composite Index added 0.7 percent and 0.4 percent, respectively.
The New York Stock Exchange will be closed on Tuesday in the observation of the Independence Day.
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