Gold slips on strong manufacturing data
A positive report on US manufacturing, along with fading fiscal fears in Europe, boosts demand for riskier securities.
By Chao Deng, TheStreet
Updated at 3:30 p.m. ET
Gold (-GC) for August delivery fell $20.20 to $1,482.60 an ounce at the Comex division of the New York Mercantile Exchange. Gold traded as high as $1,503 and as low as $1,478.30.
Despite lack of news coming out of the eurozone, investors continued to feel confident about Greece's debt situation after the country's Parliament approved austerity measures earlier in the week. A surprise jump in national manufacturing numbers, coupled with the strong manufacturing trends in Chicago reported Thursday, gave investors hope that the economy will continue to grow.
Gold and silver prices ended sharply lower after a volatile trading session Thursday as investors started putting haven assets on the back burner.
Anne-Laure Tremblay, a precious-metals strategist at BNP Paribas, said gold could lose $20 to $30 in the short term. Summer is not usually a strong period for gold prices. Strong retail demand from China, India and Southest Asia for the bullion will likely buoy prices in the longer term, Tremblay said. Some analysts predict a rally in precious metals around the end of summer.
Increasing noise from the U.S. debt debate is likely to weigh in on gold trends in the near term. As the Aug. 2 deadline to come to an agreement on the debt ceiling draws closer, some economists predict increased risk aversion in the markets. That may well translate into a shift toward haven assets like gold as July progresses.
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[BRIEFING.COM] With one hour remaining in today's session, the major averages continue hovering near their lows. Participants received two economic reports today, but neither the weekly MBA Mortgage Index (+1.0%) nor the November Treasury Budget (-$135.20 billion) is known for moving the market.
Tomorrow's data should carry a bit more of trading impact with weekly initial claims and November retail sales set to be reported at 8:30 ET. In addition, October business inventories, which ... More
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