The prices of gold rose for the first time in six days on Tuesday that the stock markets retreated following a series of historic highs on Wall Street.
The prices of bullion and gold futures were maintained positive despite new orders for capital goods U.S. factories rose for a third consecutive month in April, indicating the manufacture and economic strength, which should have been bullish for the stock markets.
But it seemed unlikely that the precious metal to make solid gains, with uncertainties in front of the policy meeting of the European Central Bank on Thursday and wariness after a major downturn in activity of investors in gold futures in the United States.
The spot price of bullion was a tap higher than Monday’s close, trading up 0.1 percent at $ 1,245.68 an ounce. Initially gold fell to a fresh four-month low of $ 1240.61, which threatens to extend the decline of the last five sessions, marking longest losing streak in almost seven months.
Comex Gold for delivery in August was quoted at $ 1,245.30 a troy ounce, up 0.06%. Overnight, by the Institute for Supply Management manufacturing data edited May twice on Monday. The index was first corrected to 56.0 after it was first reported as 53.2, before being corrected by a second time to 55.4.
ECB is hoped that the cut interest rates and reduce rates banks pay for deposit funds with the central bank below zero on Thursday. With weak demand for gold bullion in China, even after the end of the dragon boat festival on Monday, adding to the uncertainty.
The precious metal has come under heavy selling pressure recently as investors bet on robust economic growth in the U.S. in the second quarter.
Meanwhile, investors remained reluctant to buy in the market amid a weak technical picture. The prices of gold have declined during the past six consecutive sessions amid signs of bearish charts.