Gold prices bounced back after touching a 5-year low earlier in the trading session as the dollar flattened on poor US housing data.
Gold for August delivery on the Comex division of the New York Mercantile Exchange fell $8.60 to close at $1,085.50 per ounce. Earlier, the yellow metal fell $1,072.30, which was a five year low for the most-active contract.
The dollar lost most of its gains after US housing data disappointed. Home sales in June also disappointed at 482,000, below the forecast of 543,000. US Flash Manufacturing PMI in July provided a bit of optimism with a 53.8 figure, just above the 53.7 prediction.
After an optimistic US weekly unemployment reading was released yesterday, market participants wondered how that would effect next week’s Federal Open Market Committee (FOMC) meeting.
“Next week, the focus will be on the FOMC meeting – further hints that the Fed is on track for a September rate hike could present downside risks for gold especially given current momentum,” Joni Teves, an analyst at UBS, said.
In the eurozone, EU flash services number disappointed at 53.8, though the manufacturing number was as expected at 53.8.
Elsewhere, Chinese Caixin Flash China General Manufacturing PMI came out at 48.2 against a forecast of 49.8. The number was below the psychologically important 50 level for the first time in 15 months.
Turning to equities, the Dow Jones industrial average and S&P were down 0.8 percent and 0.9 percent respectively, while the dollar was 0.1 percent stronger at $1.0980 against the euro.
As for other precious metals, Comex silver for September delivery fell 5.6 cents to $14.645 per ounce. Trade has ranged from $14.330 to $14.670.
Platinum for October settlement rose $6.40 to $987.50, while the most actively traded palladium contract was at $624.35, up $6.50.
(Editing by Tom Jennemann)
The post Gold ends week lower, dollar pares gains appeared first on The Bullion Desk.
No comments:
Post a Comment