Gold Ends Higher On Global Cues, Weak Dollar

(RTTNews) - Gold futures moved up a sixth straight session to end at a three-week high on Tuesday, as investors sought the safe haven of the precious metal after most global equity markets declined. The precious metal was also supported by a weak dollar after some soft durable goods data from the U.S.

In some disappointing economic news from the U.S., new orders for U.S. manufactured durable goods decreased unexpectedly in February, with orders for transportation equipment showing a notable pullback. The weak data further weakens the Fed's case for a rate hike any time soon.

Meanwhile, the euro trended higher against the dollar after a report showed German business morale to have improved for the fifth straight month to an eight-month high in March as firms expressed greater optimism about future developments.

Gold for April delivery, the most actively traded contract, gained $5.60 or 0.5 percent to settle at $1,197.00 an ounce, on the Comex division of the New York Mercantile Exchange on Wednesday.

Gold for April delivery scaled an intraday high of $1,199.30 and a low of $1,186.10 an ounce.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 744.40 tons from its previous close of 749.77 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 96.94 on Wednesday, down from its previous close of 97.23 on Tuesday in late North American trade. The dollar scaled a high of 97.30 intraday and a low of 96.54.

The euro trended higher against the dollar at $1.0966 on Wednesday, as compared to its previous close of $1.0926 in North American trade late Tuesday. The euro scaled a high of $1.1016 intraday and a low of $1.0901.

In economic news, a Commerce Department report on Wednesday showed new orders for U.S. manufactured durable goods unexpectedly decreased in February, with orders for transportation equipment showing a notable pullback. Durable goods orders fell 1.4 percent in February following a downwardly revised 2.0 percent increase in January. Economists expected orders to climb by 0.7 percent compared to the 2.8 percent jump reported for the previous month.

Elsewhere, German business morale improved for the fifth straight month to an eight-month high in March as firms expressed greater optimism about future developments. The business climate index rose more-than-expected to 107.9 in March from 106.8 in February, results of a survey by Munich-based Ifo Institute showed Wednesday. This was the highest score since July 2014 when the reading was 108. It was forecast to rise to 107.3.

French business confidence weakened in March but remained close to its long-term average, survey data from the statistical office Insee showed Wednesday. The business confidence index fell to 99 from 100 in February. It was forecast to remain unchanged at 100.

U.K. mortgage approvals rose to a five-month high in February, the British Bankers' Association reported Wednesday. The number of mortgages approved for house purchases rose to a seasonally adjusted 37,305 in February from 36,517 in January. This was the highest since September 2014. It was expected to rise slightly to 36,650.