01/06/07: Gold up as US data comes in

The price of gold hit a two-week high today (June 1st), Thomson Financial reports.

The spot price of the yellow metal reached $662.30 an ounce - up from the $660.90 level seen in New York yesterday.

Economic data from the US is likely to impact the price. If the May non-farm payrolls and other information suggest a worsening of the country's economy, it could push gold further towards the magic $700 mark.

Yesterday the price was bumped up by unimpressive US GDP data. According to the Commerce Department, the economy grew by 0.6 per cent on an annualised basis for the first quarter, down from the 1.3 per cent gain that was forecast a month ago.

Strength in Japanese gold futures also helped to bolster the price, Reuters reports.

"Short-covering emerged after confirming solid buying interest below $650 this week," said Mitsubishi's Shuji Sugata.

"We've seen pretty big fund outflow from commodities since mid-May, but now some funds are coming back because the outlook looks brighter after yesterday's rebound."