Gold Futures Settle Modestly Higher For The Day, But Sheds Over 7% In Month

Gold futures settled higher on Wednesday, recovering from early weakness more due to bargain buying. However, the upside was limited due to a stronger dollar.

Despite continued optimism about strong U.S. economic recovery, sentiment in the market was somewhat cautious due to the surge in Delta variant of the Coronavirus in several Asian and European countries and lockdown measures in many places across the world.

The dollar index advanced to 92.41, gaining about 0.4%.

Gold futures for August ended up by $8.00 or about 0.5% at $1,771.60 an ounce.

Gold futures gained about 0.5% in the June quarter, but lost over 7% in June. In the first half of 2021, gold futures shed 6.6%.

Silver futures for September ended higher by $0.293 at $26.194 an ounce, while Copper futures for September settled at $4.2890 per pound, gaining $0.0245.

Data from Automatic Data Processing, Inc. (ADP) showed private business in the U.S. hired 692,000 workers in the month of June, higher than an expected addition of 600,000. However, the hiring in June was much below a downwardly revised 886,000 job additions in May.

According to a report released by the Institute for Supply Management (ISM), the MNI Chicago Business Barometer came in with a reading of 66.1 for June, down from a score of 75.2 in the previous month.

Data released by the National Association of Realtors (NAR) showed pending home sales in the U.S. increased by 13.1% year-on-year in May, after soaring by a record 51.7% in April.

Traders now await the crucial non-farm payrolls data for the month of June, due out on Friday (July 2).

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