Gold price rises as USD falls, economic data disappoints
Gold futures on the COMEX Division of the New York Merc rose Monday, as weaker- than-expected U.S. economic data and declines in the "Greenback" brought players and central banks back to the Gold market.
The most active Gold contract for Dec. delivery added 15.4, or 0.9%, to 1,758 oz.
The Empire State index fell to negative 7.7 in Aug. from negative 3.8 in July, showing that manufacturing activity in the New York region deteriorated for a 3rd straight month in Aug..
And the National Association of Home Builders/Wells Fargo home market index remained at 15 in August., a seasonally adjusted measure where readings over 50 are considered "good."
Meanwhile, the US Dollar index, which measures the performance of the greenback against a basket of other major currencies declined Monday, adding more upward pressure to USD-priced commodities as Gold.
Silver for Sept. delivery added 19.3, or 0.9% to finish at 39.307 oz.
US Dollar Index: 08/15/11 10:30 O=73.865 H=73.995 L=73.865 C=73.975
Paul A. Ebeling, Jnr.