RTTNews - The price of gold finished unchanged on Wednesday, retaining most of last week's gains. Higher crude oil prices boosted gold's hedge appeal, which was limited by Moody's decision to leave the U.S. credit rating at AAA.
Gold for July settlement finished at $953.30 per ounce for a second straight day. Prices reached as high as $959.60 as as low as $946.20.
The precious metal posted a modest decline yesterday, falling for the first time in five sessions. Gold gained more than $25 last week.
Moody's Investors Service said that its AAA credit rating on the U.S. has a stable outlook despite the significant deterioration in the government's debt position, citing a resilient economy, strong government institutions, high per capita income and central position in the global economy.
On the currency front, the dollar added to its six-month low against the British pound and saw minimal change against the euro and yen. Gold usually moves opposite the dollar because of its hedge appeal.
Crude oil got a boost from crude oil, which gained a dollar to finish at $63.45 per barrel, its best close since nearly November.
On the housing front, industry data showed that existing home sales rose 2.9 percent to an annual rate of 4.68 million units in April from a downwardly revised rate of 4.55 million units in March.
Meanwhile, the Mortgage Bankers Association's index of mortgage application volume dropped 14.2% on a seasonally adjusted basis for the week of May 22. The Market Composite Index was 786.0 compared to 915.9 in the previous week.
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