Gold price continued to edge higher on Thursday on the back of lower USD following the release of forecast-missing US data overnight.
The spot gold price was last at $1,204.80 per ounce, up $1.80 on Wednesday’s close. Silver was up $0.05 to $16.39 per ounce.
US data released overnight was mostly disappointing – the Empire State manufacturing index came in at -1.2, the capacity utilisation rate at 78.4 percent and industrial production at -0.6 percent. NAHB housing market index was slightly better than expected at 56 and crude oil inventories rose by 1.3 million barrels.
“Growth has stalled across a number of important manufacturing industries and some of the weakness is likely related to a deceleration in global demand for industrial products as well as competitive challenges stemming for the USD’s strength,” said Ryan Wang, HSBC’s US economist.
The dollar index fell to a one-week low today at 97.89 and was last seen at 1.0697 against the euro. The drop provided a lift for gold, moving it past the technical 50-day moving average of $1,198 and the psychological $1,200 level.
In terms of physical demand, there could be some buying ahead of the “Akshaya Tritiya’ festival in India which falls next week. Indian traditionally buy gold for the festival as it represents wealth and prosperity.
“Currency moves remain in charge for the moment, though on the physical side we are seeing good physical demand on the latest price dip ahead of the ‘Akshay Tritiya’ festival in India next week ,” said Leon Westgate, commodity strategists at ICBC Standard Bank.
In the other metals, platinum was last at $1,162, mostly unchanged, and palladium at $768 was down $3.
The post Gold price up on weaker greenback, poor US data appeared first on The Bullion Desk.
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