Gold Futures Continue Higher after Strong Week

Gold futures built on last week?s new found momentum to traded higher in the early part of Monday?s Asian session as traders continued to nibble at the yellow metal amid still deeply discounted prices.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery rose 0.86% to USD1,288.55 per troy ounce in Asian trading Monday after settling up 0.3% on Friday to settle the week at USD1,284.15 a troy ounce.

Gold futures were likely to find support at USD1,237.05 a troy ounce, the low from July 8 and resistance at USD1,301.75, the high from June 21. Last week, gold prices rallied 4.9%, the biggest weekly gain since October 2011.

In U.S. economic news published last Friday, a Labor Department report showed U.S. wholesale prices rose 0.8% last month, the biggest gain since September 2012. That follows a 0.5% increase in May. Economists expected a June increase of 0.5%.

The Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 83.9 in July from 84.1 in June. Economists expected an initial July reading of 84.7.

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