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] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.
To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More
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