Gold Advances On Weakening Dollar and Losses in Banking Shares
Gold futures prices rose on Wednesday after edging lower for two consecutive trading days. The precious metal gained on the back of weak U.S. dollar and stock markets that headed south.
August gold jumped nearly 0.4 percent to trade around $1267.00 per barrel.
U.S. stock-index gauges traded lower with all three major equity benchmark in the negative territories, weighed down by bank stocks. Banks equities, led by losses in shares of Goldman Sachs Group Inc., fell across the board after J.P. Morgan Chase & Co.’s CFO claimed that trading is down about 15% in the second quarter. The financial sector lost 1.2 percent.
Meanwhile, the greenback weakened against its major rivals. The U.S. dollar index, which measures the currency against a half-dozen rivals, dropped 0.4 percent. A weak greenback makes gold, which is quoted in dollar, more affordable for buyers holding other currencies.
Buy Stop at 1268.00, Take profit 1274.00, Stop loss at 1265.00