Gold Futures Settle Slightly Higher On Weak Dollar, Economic Data

Gold prices edged higher, shrugging off early weakness, as the dollar turned weak against most of its major rivals, amid hopes the Federal Reserve might stop hiking rates during the later part of the year if rate hikes result in economic slowdown.

The dollar index, which dropped to 101.77, recovered to 101.90, but still trailed its previous closing mark by about 0.16%.

Gold futures for June ended higher by $1.30 or about 0.1% at $1,847.60 an ounce, off the session’s low of $1,836.30.

Silver futures for July ended up by $0.095 at $21.965 an ounce, while Copper futures for July settled at $4.2590 per pound, up $0.0045 from the previous close.

Data from the Labor Department showed initial jobless claims dipped to 210,000 in the week ended May 21st, a decrease of 8,000 from the previous week’s unrevised level of 218,000. Economists had expected jobless claims to edge down to 215,000.

Meanwhile, a separate report from the Commerce Department showed economic activity in the U.S. slumped by slightly more than previously estimated in the first quarter of 2022.

A report from the Commerce Department said real domestic product slid by 1.5% in the first quarter compared to the previously reported 1.4% drop. Economists had expected the decrease in GDP to be revised to 1.3%.

The slightly bigger than expected pullback came after GDP skyrocketed by 6.9% in the fourth quarter of 2021.

The National Association of Realtors also released a report showing pending home sales plummeted by much more than expected in the month of April, plunging by 3.9% to 99.3 in April after tumbling by 1.6% to a revised 103.3 in March.

Economists had expected pending home sales to descend by 2% compared to the 1.2% slump originally reported for the previous month.

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