MTECHTIPS:-Gold prices edge down in Asia with market looking for direction
Gold prices edged lower in Asia on Thursday with the market looking for cues on demand prospects.On the Comex division of the New York Mercantile Exchange, goldfutures for August delivery traded at $1,259.00 a troy ounce, down 0.06%, after hitting an overnight session low of $1,256.20 and off a high of $1,267.40. Overnight, the dollar continued to applaud Tuesday’s upbeat U.S. consumer confidence, housing and pricing data, which served as a reminder that the economy continues to recover and is in less need of monetary stimulus measures. A weaker euro softened gold prices as well by sending investors favoring the U.S. dollar. The euro has fallen nearly 2% against the dollar since the ECB indicated at its May 8 meeting that monetary authorities would feel “comfortable” with easing monetary policy at its June 5 meeting to help shore up the region’s fragile recovery. On Tuesday, ECB President Mario Draghi said the bank was aware of the risks of persistently low inflation and was prepared to take steps to get euro zone inflation back to its target, the latest indication that the bank could loosen monetary policy next week.