The gold price rose above the psychological $1,200 mark after overnight data from the US underperformed.
The ISM manufacturing PMI, which has been falling towards 50 since October when the Federal Reserve ended its third QE programme, points to falling economic momentum. For the month of March, the inidcatoin came in at 51.5 against the expected 52.9.
Spot gold was last at $1,203.40 per ounce, flat at where it ended yesterday. Silver fell a marginal three cents to $16.91 per ounce.
In other data, US ADP jobs data showed companies in the US added the fewest jobs in around a year at 189,000 in March, well short of the forecast 227,000.
The softer-than-expected ADP report added to speculation that the Fed will postpone raising rates, putting pressure on the dollar as well.
Construction spending, meanwhile, was as predicted at -0.1 percent while ISM manufacturing prices bettered expectations at 39.0.
For the rest of the week, market participants will look out for US trade balance and unemployment claims number tonight, as well as non-farm payrolls and unemployment rate out on Friday. Volatile trading could be expected due to the coincidence of a long weekend holiday with key data release.
The PGMs pared back some gains this morning after their outstanding performance yesterday. Platinum was last $1.50 lower at $1,158 per ounce after rising close to two percent on Wednesday. Palladium was $3 lower at $745 per ounce.
“The sheer size of the move following a second tier economic release, appears to be position squaring ahead of the Easter long weekend and the non farm payroll which being released during the Good Friday holiday,” said broker MKS Capital.
“Comex will be closed tomorrow but will reopen Monday, which could be an extremely volatile session with the release on the NFP’s when all markets are closed.”
The post Gold price holds above $1,200, volatility expected ahead of Easter weekend appeared first on The Bullion Desk.
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