The gold price remained off its five-week lows on Tuesday, having recovered in the previous session, but still the yellow metal was stuck under the psychologically important $1,200 level as the dollar pushed higher against the euro.
Spot gold at $1,188.30/1,189 per ounce was up $10.60 on the previous close, although most participants will be on the sidelines ahead of Friday’s blockbuster US Non-farm payroll data – forecast at 231,000.
“A reading below consensus may delay rate hike expectations and provide a boost for gold while a reading above consensus may weigh on bullion, in our view. All the employment reports so far this year have had a notable impact on near-term gold direction,” said HSBC analyst James Steel.
“A weak print could see gold push above $1,200,” added ANZ Research.
In currencies, the euro was last at 1.1106 against the dollar as it found support from the previous day’s US factory orders, which at 2.1 percent was the fastest increase in eight months.
In data, yesterday, Chinese HSBC final manufacturing data disappointed in April at 48.9 against a forecast of 49.4 – the numbers further signalling a slow-down in this region.
Meanwhile, data from the EU was mixed and while Spanish and French final manufacturing numbers disappointed, Italian and German numbers were better-than-forecast and final EU manufacturing was positive at 52.0. EU Sentix investor confidence was also positive at 19.6.
In today’s numbers, Spain’s unemployment change was better-than-expected at -118,900 while later the EU has its economic forecast of note. From the US there will be trade balance, final services PMI and IBD/TIPP economic optimism.
Silver at $16.40/16.45 was up from Friday’s $16.12, while platinum at $1,145/1,150 was $19 higher and palladium at $777/782 was up $6.
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