Gold prices headed higher on Monday, adding to its climb to the highest level in more than three months as stocks in many parts of the world were trading lower.
June gold was up $9.10, or 0.5%, to trade around $1,847.20 an ounce, after prices for gold last week reached the highest for a most-active contract since Feb. 10 and put in a weekly rise of 0.4%.
Gold prices held solid gains after a reading of manufacturing activity in the New York area, the Empire State Manufacturing Index, slipped to a reading of 24.3 in May from a more-than-three-year-high of 26.3 in April, the New York Fed said Monday.
The new orders index rose 2 points to 28.9 in May, while shipments rose 4.7 points to 29.7.
“Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart,” wrote Jim Wyckoff, senior analyst at Kitco, in a daily note.
The analysts said the next upside target for bullion is to “produce a close above solid resistance at $1,881.00, while support for gold sits at $1,800 on the downside.
Bullion’s rise on Monday comes as major U.S. stock indexes were on track for declines to start the week following a trading stretch marked by rising concerns about inflation.
Source: Marketwatch