Gold Rises on Falling U.S. Treasury Yields

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Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as U.S. 10-year Treasury yields fell.

The most active gold contract for December delivery rose 22.10 U.S. dollars, or 1.15 percent, to close at 1,948.10 dollars per ounce.

Economic data released Wednesday were mixed. The S&P Global flash U.S. services purchasing managers index (PMI) fell to 51 in August from 52.3 in July, missing market expectations of 52.2 to reflect the slowest expansion in the U.S. services sector in six months.

The S&P Global flash U.S. manufacturing PMI dropped to 47 in August from 49 in July. This reading came in worse than the market expectation of 52.

The U.S. Commerce Department reported that U.S. sales of new homes increased 4.4 percent in July to 714,000. The rebound in new home sales has continued for more than a year.

Market analysts expect a bearish trading environment for gold for the rest of this year, seeing gold prices trading in a range of 1,850 dollars to 1,950 dollars, with downside potential of 1,800 dollars.

Silver for September delivery rose 94.20 cents, or 4.02 percent, to close at 24.392 dollars per ounce. Platinum for October delivery rose 12.70 dollars, or 1.37 percent, to close at 938.20 dollars per ounce.