Gold Maintains Gains as China’s PMI Rises
Gold gained yesterday and maintained its gains today after a government report showed that China’s manufacturing expanded last month. The China Federation of Logistics and Purchasing reported that manufacturing Purchasing Managers’ Index rose from 49.8 in September to 50.2 in October. The data was in line with forecasts. Many market participants think that government data is not reliable, but its impact cannot be ignored nevertheless. The HSBC/Markit manufacturing PMI remained below the 50.0 level, indicating further decline, but also was higher than in the previous month.
The precious metal was also stronger on hopes for stimulus in China. Some analysts are worried, though, that traders overreacted to the announcement of stimulus and prices may come off a bit.
Gold rallied from $1,711.67 to $1,721.22 per troy ounce on COMEX yesterday and remained near that level today. Prices were down 2.9 percent in October, posting the first weekly decline since May.
If you have any questions and comments on the commodities today, use the form below to reply.