Gold settles higher for the first time in five sessions
Bullion prices ended with strong gains on Monday, 12 May 2014. Gold futures on Monday settled higher for the first time in five sessions, finding support from turmoil in Ukraine and expectations that India may soon ease restrictions on gold imports. Continued geopolitical tensions and a stronger euro provided a lift for gold futures Monday.
Gold for June delivery rose $8.20, or 0.6%, to settle at $1,295.80 an ounce on the Comex division of the New York Mercantile Exchange after tapping a high of $1,304.50 in electronic trading. Prices had tallied a loss of about 1.7% in the last four trading sessions.
July silver rose 42 cents, or 2.2%, to end at $19.54 an ounce, its highest in nearly a week.
A rally in equities failed to draw much attention away from the precious metal. Stocks rose around the globe, with China posting strong gains after the introduction of a blueprint for an overhaul of capital-market regulations. U.S. stocks traded solidly higher, with the Dow Jones Industrial Average tapping an all-time high.
Economic data at Wall Street was limited to the Treasury budget, which posted a surplus of $106.90 billion in April 2014, down from a surplus of $112.90 billion in April 2013. The Treasury data are not seasonally adjusted and the April surplus cannot be compared with the results from March. The consensus expected a budget surplus of $114.00 billion. The Congressional Budget Office released their monthly budget preview last week and predicted a surplus of $114.00 billion.
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