Gold was up around 0.8 percent on Tuesday morning after weak PMI data from China renewed fears about the health of its economy, which weighed on equities and boosted safe-haven investments.
The spot gold price was last at $1,142.20/1,142.50 per ounce, up $8.90 on the previous close. Trade has ranged from $1,134.5 to $1,144.4 so far.
Silver was little changed at $14.59/14.64 per ounce, platinum at $1,006/1,011 was down $10 and palladium at $588/593 climbed $5.
“Gold is leading the precious metals higher, with prices climbing back through $1,140, suggesting another up leg. The other precious metals are following to various degrees but look well placed to push higher,” FastMarkets head of research William Adams said.
China’s official purchasing managers’ index (PMI) fell to 49.7 in August from 50.0 in July, its weakest reading in three years. The official non-manufacturing PMI also showed a cooling in the Chinese services industry, falling to 53.4 in August from 53.9 in July.
As well, the Caixin final manufacturing PMI at 47.3 was above its preliminary reading of 47.1 but down from 47.8 in July and its lowest since March 2009. The Caixin services PMI at 51.5 missed the forecast of 53.9 and was lower than its previous reading of 53.8.
Chinese equities extended losses today, with the CSI closing down 1.28 percent.
“As US equity futures look to open softer we may see the metal test $1,150, while $1,135 should provide initial support above the stronger $1,125,” MKS said in a note.
Meanwhile, gold has been closely tracking changes in Fed policy expectations of late, UBS noted. A crucial US jobs report on Friday may determine whether the Federal Reserve will raise interest rates in September.
“The importance of this week’s employment report is somewhat elevated given the lack of clearer signals from the recent Jackson Hole symposium – comments from vice chairman Fischer seemed to focus on trying to keep the Fed’s options open,” UBS said.
Still, further support from US rate expectations should be limited because the market is already pricing in a low probability of a September increase, Barclays said in a note.
In currencies, the dollar index is edging lower again – it was last at 95.50.
The economic agenda is busy, with manufacturing and services PMIs out across Europe mostly lower than expected while the US number is still to come this afternoon. The EU unemployment rate was than expected at 10.9 percent.
US construction spending, IBD/TIPP economic optimism and total vehicle sales are also scheduled for release.
Meanwhile, India imported 56.6 tonnes of gold in June, a drop of 27 percent on the same month of last year, Commerzbank noted. At 212.6 tonnes, second-quarter imports were up 23 percent on the year-ago level.
(Editing by Mark Shaw)
The post Gold up 0.8 pct after weak Chinese PMI data feeds slowdown fears appeared first on The Bullion Desk.
No comments:
Post a Comment