Precious-Gold resumed its rebound for a six-year low as the dollar slipped from an eight-month high after downbeat US economic reports.
Advertisement
The most actively traded gold-futures contract, for February delivery, was recently up $6.10, or 0.6%, at $1,062.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
“One doesn’t sort of track things each day for most people, but in fact during the September quarter, that’s July, August, September, the Aussie dollar declined from about 77 cents United States to about 70 cents USA and at the moment it’s sitting around the 72 cent mark and that’s quite a drop over the three month period”.
Top-tier data includes the Institute for Supply Management’s manufacturing index later Tuesday and the nonmanufacturing index on Thursday. It is imperative to state that gold prices have plunged by close to 10 percent during the last month and have hurt the stock prices of gold mining companies like Yamana as the cost of extraction is higher than the selling price which hurts margins. Friday’s USA payrolls report will be closely watched for clues about the strength of the economy and its impact on the Fed’s monetary policy. A strong number, after a surge in job growth in October, could cement expectations that the US central bank will deliver its first hike in nearly a decade.
Overall, institutional money keeps walking away from gold, with holdings in the SPDR Gold Trust ETF shrinking another tonne Friday, but Beijing confirmed it added another 14 tonnes last month, putting Chinas bullion reserves now above 1,722 tonnes, according to Ash.
Slowing Asian demand, despite the recent slide in prices, also dampened the sentiment around the bullion. In spite of the slight gains, gold still remained near six-year lows from earlier last week when it tested the $1,050 level. The ECB is widely expected to ease policy.
The yellow metal soared for a second straight session to resume its rise after falling to a bottom of $1053.05 an ounce on Monday.
Silver was up 0.2 per cent at $US14.07 but was set for a 9.5 per cent monthly loss.
Advertisement
Silver was up 0.6 percent at $14.17 an ounce, while platinum was up 0.6 percent at $835.74 an ounce and palladium was up 0.3 percent at $546.50 an ounce.
