Stronger dollar and an appetite for equities continue to weigh
Bullion prices finished higher on Tuesday, 26 August 2014 at Comex. Gold prices rose but two-month lows weren't far off as a stronger dollar and an appetite for equities continue to weigh.
Gold for December delivery settled up $6.30, or 0.5%, at $1,285.20 an ounce.
September silver settled up nearly 3 cents, or 0.1%, to $19.39 an ounce.
Gold held on to gains after data showed U.S. orders for durable goods jumped more than 22% in July, driven by big orders for Boeing aircraft. Excluding the transportation sector, sales were down 0.8% amid widespread weakness. Beyond durable goods, gold had little outright reaction to the S&P/Case-Shiller house price index for June, which showed home prices rose 1%, and the FHFA house price index, which saw a 0.4% June rise.
Comments from European Central Bank president Mario Draghi late last week in Jackson Hole, Wyoming, are concerning to many market watchers. Draghi strongly hinted the ECB is set to implement more monetary stimulus measures to prop up the flagging European Union economyand to ward off the threat of deflation in the bloc. This notion is an underlying bullish factor for gold.
Also, the Conference Board's Consumer Confidence Index rose to 92.4 in August from a downwardly revised 90.3 (from 90.9) in July, while the consensus expected a decline to 88.3. The Present Conditions Index increased to 94.6 in August from 87.9 in July, while the Expectations Index fell to 90.9 from 91.9.
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