Gold little changed, eyes are on manufacturing data
Precious-Gold slightly changed today ahead of the release of important U.S. manufacturing, housing and jobless claims data which will determine the strength of recovery in the world's largest economy.
China's manufacturing dropped to 52.1 from 53.9 in May, Swiss PMI fell to 65.7 from 66.4, and European PMI manufacturing lingered at 55.6 in June, in line with both previous and estimated. Later on today, ISM manufacturing in the U.S. is due with expectations the reading will retreat to 59.0 from 59.7 in May.
Although the yellow metal has benefited from debt concerns in Europe which boosted demand on the metal as a safe asset, but the it reached record high this month at $1265.05 investors became wary of taking long positions as they fear that a wave of profit taking may lower gains.
Still, there are fears amid the slowdown in growth and financial worries as European banks have to repay 442 billion euros this month to the ECB. Also, Moody's said it may downgrade Spain's credit rating.
Investors are scrutinizing fundamentals from global economies for the moment to determine the might of global recovery amid the planned spending-cut plans which may affect growth projections.
Moreover, the metal did not benefit today from the dollar's decline against majors as seen by the dollar index which plummeted to 85.88 from the day's opening at 86.06. On the other hand, oil fell for the fourth consecutive session to $74.42 a barrel from yesterday's closing at $75.30.
Yesterday, gold gained $1.60 or 0.13% to close at $1242.05 an ounce. Gold Price was setin London on Wednesday at $1244.00 per ounce during the PM fixing retreating from $1244.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, rose to 1,320.44 metric tons on June 30.
Spot gold is traded at $1241.55 an ounce, recording a high of $1243.50 and a low of $1238.44.
Physically, demand on gold slipped due to the rise in prices, especially in India, the largest importer of gold, as figures show that purchases slumped 36% this year.