Gold edges higher as the US Dollar Weakens

The price of spot gold (XAU/USD) inched higher during Asian trade hours as the US Dollar moved lower. Weak US manufacturing data put a dent in the Federal Reserve’s rate hike path.
By 1:00 am GMT, spot gold was trading at $1,231.06 per ounce. On Monday, gold touched its highest level since May 4 at $1,237.26 per ounce.This morning, the US Dollar index, which measures the buck against a basket of currencies, lost nearly 0.1 percent and remains below $100.

In economic news, the New York Fed, said yesterday, that its business activity in New York State fell in the month May. This barometer fell into negative territory for the first time since October. This was just before the US presidential election.

However, a private gauge of US housing building sentiment rose in May to its second strongest level since the housing bubble burst a decade ago. The existing supply of homes remains tight.

Gold gets a boost from US Political Drama

Unconfirmed reports in the Washington Post is claiming that US President Donald Trump disclosed highly classified information to the Russian foreign minister about a planned Islamic State operation during their meeting last week. The Post cites two unnamed officials as their source. The White House says the allegations are false.

In other global drama, the hermit state of North Korea successfully conducted a missile test. North Korea has stated that it will would continue such tests “any time, any place.” They are openly defying any UN Security Council resolutions, as well as warnings from the United States and China.