Gold rises as Chinese investors return
The gold price rose on Tuesday morning during Asian trading hours as Chinese investors return from Monday’s Qing Ming festival holiday.
Spot gold was last at $1,225.50-1,225.80 per ounce, up $9.80 from Monday’s close. Trading ranged at $1,214.90-1,227 so far.
“On the upside, gold needs to move back above its 20 DMA ($1,239.50) to shore up sentiment. If it can, the next challenge would be to push higher toward the 2016 high ($1,283) and $1,300,” said Boris Mikanikrezai, metals analyst at FastMarkets.
In other commodities, investors have turned bearish on commodities like copper and crude oil which have retreated from March highs, said ANZ Research on Tuesday morning. Benchmark crude oil prices have fallen by more than two percent overnight.
Money managers have started to turn bearish on crude oil and are likely to remain cautious until an April 17 meeting when key producers will again try to reach an agreement on controlling supply, said the bank.
The Brent crude oil spot price was last at $37.52 per barrel, up 0.09 percent, and the Texas light sweet crude was recently 0.11 percent higher at $35.48 on Tuesday.
In US data released Monday, factory orders disappointed at -1.7 percent and the labour market conditions index came in at -2.1.
On Monday, Boston Federal Reserve president Eric Rosengren – whom had tended to be on the dovish side in the past – said in a speech that it was “surprising” that futures markets currently price in just one or no rate hikes this year, which could prove to be “unduly pessimistic”.
“As I see it, the risks seem to be abating that problems from abroad would be severe enough to disrupt the U.S. recovery. Financial-market volatility has fallen, and most economic forecasts do not reflect expected large spillovers from continued headwinds from abroad,” he said.
Majority of market participants expect the next US rate hike in September, according to the CME Group FedWatch.
Other data due later today from the US includes trade balance, final services PMI, ISM non-manufacturing PMI, JOLTS jobs openings and IBD/TIPP economic optimism, as well as a string of services PMI from Eurozone countries.
In currencies, the US dollar index was last at 94.51 on Tuesday, down 0.09 percent from Monday’s close.
In equities, the Dow Jones Industrial Average closed 0.31 percent lower 17,737 on Monday, while the Shanghai composite index rose 0.1 percent to 3,012.444 so far on Tuesday.
In other precious metals, silver rose $0.115 to $15.065/15.085 recently. After falling by more than $20 on Monday, platinum was $12 higher at $946/951 on Tuesday. Palladium increased $3 to $548/554 so far on Tuesday.
On the Shanghai Futures Exchange, gold for June delivery was unchanged at 255.80 yuan per gram and June silver was flat at 3,373 yuan per kilogram. |
