Gold prices lacked direction on Friday as the People’s Bank of China (PBoC) increased the value of the yuan while boosting its gold holdings.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last up $1.60 or 0.1 percent to $1,117.20 per ounce. Trade has ranged from $1,111.60 to $1,120.40.
Earlier this morning, the PBoC announced that it bought 19 tonnes of gold last month when prices were at five year lows. Total gold holdings were at 1,677 tonnes at the end of July, up one percent.
The bank also raised its reference rate to the dollar by 0.05 percent after lowering the yuan a combined 4.6 percent over the past three days.
Yesterday in the US, core retail sales month-over-month in July were in-line with forecasts at 0.4 percent, while retail sales month-on-month in July matched the consensus at 0.6 percent.
The dollar was unchanged at 1.1151 against the euro.
“Reasons for [higher gold prices] included the firmer US dollar for a time and better-than-expected retail sales figures in the US in July and June,” Commerzbank said. “The probability of the US Federal Reserve raising interest rates in September that is factored in by the market is now once again just shy of 50 percent.”
In news, the Greek parliament passed its third bailout totalling 85 billion euros. The programme calls for more austerity in the form of increased spending cuts and an increase in taxes.
In the eurozone, Final CPI year-over-year in July was in-line with forecasts at 0.2 percent. Final Core CPI matched the consensus at a one percent gain.
Additionally, flash GDP quarter-over-quarter in July was at a 0.3 percent increase, a tad below the estimates of 0.4 percent.
Meanwhile to the US, PPI month-over-month in July was at 0.2 percent, above the 0.1 percent mark, while Core PPI in July rose 0.3 percent, besting the forecast of 0.1 percent.
US PPI, industrial production, capital utilisation rate and University of Michigan consumer sentiment and inflation expectations are due for release later today.
Turning to wider markets, Germany’s DAX and France’s CAC-40 were 0.5 percent and 0.7 percent respectively.
As for other precious metals, Comex silver for September delivery was last up 5.1 cents to $15.450 per ounce. Trade has ranged from $15.320 to $15.505.
Platinum for October settlement increased $6.30 to $1,001.30 per ounce, while the most actively traded palladium contract was at $621.75 per ounce, up $6.05.
(Editing by Tom Jennemann)
The post Gold little changed, China reveals increased gold holdings appeared first on The Bullion Desk.
No comments:
Post a Comment