Gold headed for its highest settlement in more than a week
It was a day of good gains for bullions on Tuesday, 06 October 2015. Gold futures on Tuesday headed for their highest settlement in more than a week, set for a third straight session gain as investors focus on the expectation that benchmark interest rates will be lower for longer. Lackluster economic data, headlined by a weak jobs report last Friday, has provided some support for gold.
December gold climbed by $10.20, or 0.9%, to $1,147.80 an ounce on Comex.
December silver also picked up 32.7 cents, or 2.1%, to trade at $16.045 an ounce.
Gold prices ended the U.S. day session higher on Tuesday, as the key outside markets were in a fully bullish daily posture for the precious metals solid gains in crude oil prices and a lower U.S. dollar index.
Gold gains gathered steam in early Tuesday trade after a report showed that the U.S. trade deficit jumped almost 16% in August to $48.3 billion due to a relatively stronger dollar. The report may offer fodder for those forecasting a delay in a rate increase by the U.S. central bank.
Gold also has benefited from a dollar that has slumped as predictions for a Fed rate hike shifts to sometime in 2016. The ICE U.S. dollar index, a measure of the greenback's strength against a basket of six rival currencies, was down 0.6% in Tuesday trade.
It was a quieter overnight trading session worldwide Tuesday, with no major, markets-moving economic news released. China markets are closed this week for the Golden Week holiday.
The raw commodity sector is still in an overall slump, which has helped to produce worldwide deflationary worries. However, just the past few trading sessions there are green shoots showing in a few markets that could be very early clues the raw commodity sector bust is coming to an end.
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