Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly Monday as the U.S. dollar showed weakness.
The most active gold contract for June delivery added 0.40 U.S. dollar, or 0.03 percent, to settle at 1,235.00 dollars per ounce. Gold was given support as the U.S. dollar decreased against most major currencies Monday as recent economic data from the country came out overall negative.
Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors. The world's key oil producing countries failed to deliver any concrete agreement to freeze production at the end of their ministerial meeting in Doha, Qatar, Sunday amid disagreements on the wording of the agreement.
Oil prices shaved most of early losses to trade mildly lower around midday Monday after Doha meeting and analysts noted that gold futures were helped by safe-haven demand as oil stocks dropped after the Doha meeting.
Traders are waiting for the housing starts reporting Tuesday, existing home sales Wednesday, and jobless claims and the Philadelphia Fed Business Outlook Survey Thursday.
Analysts believe that while the prices of oil will be leading the U.S. dollar and therefore gold, these economic reports will likely influence confidence levels in investors and give a better forecast for the long-term outlook for gold.
On the economic front, the housing market index was unchanged for a third straight month at 58 in April, according to a report released Monday by the National Association of Home Builders.
Silver for May delivery fell 6 cents, or 0.37 percent, to close at 16.253 dollars per ounce. Platinum for July delivery dropped 12. 1 dollars, or 1.22 percent, to close at 977.80 dollars per ounce.
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