The gold price rose slightly during Asian trading hours on Thursday, after falling to a one-week low overnight.
Spot gold was last at $1,127.2/1,127.5 per ounce, up $3.8 on Wednesday’s close. Trading ranged from $1,123.2-1,129.2 so far.
Earlier on, the precious complex had come under heavy selling pressure on position squaring, strong US dollar and the US equity markets soaring, said MKS Group in a Thursday morning note.
Stronger US data released on Wednesday also raised prospects of an interest rate hike by the Federal Reserve.
“Turmoil across global markets did little to bring people back to gold as investors ignored the metal’s haven appeal and focused on the prospect of higher US interest rates. A recent survey suggests traders are pricing in an almost 50 percent chance that the Fed will start tightening monetary policy by the end of the year,” noted ANZ Research on Thursday morning.
In equities, the Shanghai composite index has so far risen by 1.04 percent to 2,957.863 – having topped 3,000 earlier on – on Thursday morning on support from the US equity rebound and China’s latest stimulus measure announcement.
The People’s Bank of China said on late Wednesday that it will inject 140 billion yuan ($21.80 billion) into the financial system through a short-term liquidity adjustment operation. This followed its Tuesday’s announcement of a benchmark lending rate cut by 25 basis points to 4.6 percent – the fifth reduction since November – with effect from Wednesday.
In data, the preliminary GDP, unemployment claims and pending home sales from the US are due to be released later today.
In other precious metals, silver was at $14.17/14.22 per ounce, up $0.08. Platinum was at $990/995, up $12, with palladium also rising $7 to $536/541 so far on Thursday morning.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 235.1 yuan per gram, while December silver was flat at 3,269 yuan per kilogram recently on Thursday morning.
The post Gold up slightly after overnight drop appeared first on The Bullion Desk.
No comments:
Post a Comment