Gold futures climbed Friday but reversed an early gain and turned lower for the week after data showing November gains in the U.S. manufacturing and services indexes and a rise in consumer sentiment buoyed benchmark stock indexes, dulling gold’s haven appeal.
The IHS Markit said its flash manufacturing purchasing managers index rose to 52.2 in November from 51.3 in October—the fastest rate since April. The flash services purchasing managers index in November also rose to 51.6 from 50.6, for the quickest expansion since July.
Separately, the final reading of the University of Michigan’s U.S. consumer-sentiment index in November was 96.8, above the October level of 95.5. Economists surveyed by MarketWatch had forecast an unchanged reading of 95.7.
December gold GCZ19, +0.20% gained $2, or 0.1%, to reach $1,465.60 an ounce on Comex, after trading as high as $1,473.40 during the session. It settled Thursday at its lowest since Nov. 13, according to FactSet data. December silver SIZ19, +0.00% shed 1.5 cents, or 0.1%, to reach $17.05 an ounce, after slipping 0.3% a day ago.
For the week, the yellow metal is headed for a 0.2% weekly loss, while silver is on pace to book a weekly rise of 0.6%.
Gold hung onto a gain Friday, albeit a modest one, following weak economic data from Europe and against a backdrop of trade worries.
The yellow metal is rising as “Europe stagnates, trade uncertainty persists and as the Hong Kong situation seems to be coming to a head,” wrote Edward Moya. senior market analyst at Oanda, in a daily research note.
IHS Markit’s purchasing managers indexes for the eurozone area pointed to slowdown in economic growth, even as German data showed some signs of life. Meanwhile, the U.K.’s economic performance was the worst since July 2016, with manufacturing and services PMI both coming in below 50, a level that represents a dividing line between contraction and expansion.
On top of that, Britain faces a general election on December 12 as it attempts to exit from the European Union, which comes as Hong Kong is set to have District Council elections on Nov. 24., amid violent protests in the semiautonomous region that have played out for months.
Meanwhile, legislation on Hong Kong that allows for the U.S. to rescind Hong Kong’s special status is now being passed to President Donald Trump.
Those geopolitical events and fitful progress toward a U.S.-China trade agreement have supported the long-term bull case for bullion, even if it has retreated from a psychologically significant level at $1,500 in recent trade, commodity experts say.
On Friday, Trump told “Fox & Friends” in a phone interview that “we have a very good chance to make deal.”
Gains for gold and sliver also come as yields for haven bonds have been sliding, with the 10-year Treasury note yield TMUBMUSD10Y, -0.34% poised for a weekly loss. Lower yields can draw bids for gold compared against government debt because the asset doesn’t bear a yield.
Among other metals, December copper HGZ19, +0.61% rose 0.6% to $2.639 a pound, trading nearly flat for the week. January platinum PLF20, -1.86% fell 1.8% to $901.40 an ounce, while December palladium PAZ19, +0.37% added 0.4% to $1,739.10 an ounce.
The SPDR Gold Shares exchange-traded fund GLD, +0.13% traded nearly unchanged Friday, on track for a weekly fall of 0.1%.
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