Tue, April 06, 2010
Business > Markets

Gold rises on upbeat economic data

2010-04-06 01:33:24 GMT2010-04-06 09:33:24 (Beijing Time)  SINA.com

CHICAGO, April 5 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange ended higher on Monday, benefited from rising expectation for global economic growth. Sliver and platinum both surged.

The most active gold contract for June delivery rose 7.7 U.S. dollars, or 0.7 percent, to finish at 1,133.8 dollars.

The U.S. labor department said on Friday that 162,000 jobs were created in U.S. last month, more than any month in last three years, suggesting that the U.S. labor market has started to stabilize and the world's largest economy is strengthening.

The contracts for pending home sales unexpectedly soared in February, far exceeding expectations, according to the report released by National Association of Realtors on Monday.

The Institute for Supply Management said on Monday that the ISM service index rose to 55.4 percent from 53.0 percent in February. The gain was stronger than expected signaling that the U.S. economic recovery is on track.

The upbeat economic data boosted investor's willingness to move into riskier but higher-yielding assets or currencies and reduced dollar's appeal, the weak dollar increased gold's alternative investment demand.

Meanwhile, oil futures topped 86 dollars a barrel on Monday, surging beyond a 17-month high, the strengthening oil price also helped lift the gold price as investors generally buy gold as a hedge against oil-led inflation.

May silver was up 22.8 cents to 18.118 dollars per ounce. July platinum surged 34.2 dollars to 1,709.8 dollars an ounce.

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