The gold price inched higher during Asian trading hours on Monday as volatilities returned to Asian stock markets and on possible US interest rate hike.
Spot gold was last at $1,134.2/1,134.5 per ounce, up $1.1 on Friday’s close. Trading ranged from $1,129.4-1,135.3 so far.
The Shanghai composite index fell 2.95 percent to 3,137.126 so far on Monday morning, after closing 4.82 percent higher at 3,232.349 on Friday.
The Chinese stock market retreated on Monday morning on word in the market that Beijing will no longer intervene to support the local equity market but instead focus on punishing those it suspected of disrupting the stock market.
Comments from Federal Reserve vice chairman Stanley Fischer at the Jackson Hole symposium in Wyoming over the weekend also retained the possibility of a September interest rate hike, noted ANZ bank.
“Fischer reaffirmed that the Fed remained on track for lift-off this year and that the “door remains open” to a September hike,” it said in a note on Monday morning. “A hike still looks likely by year-end. China needs watching but developments as yet don’t warrant changing tack.”
In data, the European CPI flash estimate and core CPI flash estimate are due later on Monday. Industry watchers will also look to the Chinese manufacturing PMI, non-manufacturing PMI, Caixin final manufacturing PMI, Caixin services PMI to be announced on Tuesday.
In other precious metals, silver was at $14.49/14.54 per ounce, down $0.05. Platinum was at $1,005/1,010, down $9, with palladium also falling $1 to $580/585 so far on Monday morning.
On the Shanghai Futures Exchange, gold for December delivery was flat at 235.75 yuan per gram, while December silver was unchanged at 3,334 yuan per kilogram recently on Monday morning.
The post Gold inch higher on equity volatility, possible US rate hike appeared first on The Bullion Desk.
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