Gold prices rose for a fourth day on Tuesday as the dollar slid on signs of slower economic activity in the United States that dented expectations of an aggressive string of interest rate hikes by the US Federal Reserve. The New York Federal Reserve bank said on Monday its Empire State Manufacturing Activity index, a report on business activity in the state, unexpectedly fell in May, sinking into negative territory for the first time since October. The weaker-than-expected report could be a harbinger a possible deterioration in the US manufacturing sector.
Spot gold was up 0.4 percent at $1,234.81 per ounce at 0731 GMT. On Monday, it hit $1,237.26, its highest since May 4. US gold futures gained 0.4 percent to $1,234.90 an ounce. "In the shorter term it (weaker US data) could lift gold prices to a certain extent as it ensures the pace of the interest rate hikes do not accelerate," said Mark To, head of research at Hong Kong's Wing Fung Financial Group. Spot gold may rise more to $1,245 per ounce, as it has cleared a resistance at $1,233, according to Reuters technical analyst Wang Tao.
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