The U.S. dollar index was up 1% at $115.46, while the euro was falling 0.3% at $1.30 vs. the dollar. The spot gold price was rising by $15. "US GDP data and Chinese PMI (purchasing managers index) readings over the weekend are likely to set the tone for market direction over the next few days," BullionDesk.com analyst James Moore said in a morning note. "A strong reading will likely be negative for gold but positive for the PGMs (platinum group metals)." Moore said that despite the scale of selling seen in gold from funds and ETF redemptions the metal has found good volumes of over-the-counter physical and investment buying with strong technical support anticipated towards the 200-day moving average of $1150.80. Concerns of economic slowdowns have typically spurred gold demand. Out of the four recessionary periods since the U.S. abolished the gold standard, three have led to stronger gold prices.
Silver prices were rising 37 cents to $17.99 while copper prices were up 2 cents at $3.31. Gold mining stocks, a more risky but more profitable way to invest in gold, were mixed. Yamana Gold ( AUY) ended the trading session up 1.8% at $9.42, while AngloGold Ashanti ( AU) increased 2.4% to $40.52. Agnico-Eagle Mines ( AEM) rose 1.3% to $55.75 and IAMGOLD ( IAG) added 2.1% to $15.81. -- Reported by Andrea Tse in New York Follow Andrea Tse on Twitter and become a fan on Facebook.
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