London AM fix was USD 1,597.75, EUR 1,244.64 and GBP 1,051.64 per ounce. Friday, March 28th London AM fix was USD 1,602.50, EUR 1,253.13 and GBP 1,057.41 per ounce. Silver is trading at $28.04/oz, €21.94/oz and £18.54/oz. Platinum is trading at $1,593.25/oz, palladium at $771.00/oz and rhodium at $1,200/oz. Gold fell $0.90 or 0.06% and closed yesterday at $1,598.50/oz. Silver closed at $28.01, down 1.44%.
U.S. economic data was weak. U.S. factory activity grew at the slowest rate for the first 3 months of the year, highlighting that the U.S. recovery is still encountering many bumps along the road. The poor data bolstered the yellow metal’s safe haven appeal; however investors will be awaiting the U.S. nonfarm payrolls data on Friday. Bank of Japan and European Central Bank policy meetings are Thursday.
Gold gained 1.2% this March. It is the yellow metal’s first monthly gain since September. Gold bullion prices have fallen 4.6% year to date, on hopes that the U.S. economy is strengthening. However, the U.S. still has to sort out the budget deficit and the debt ceiling debate, not to mention issues in Europe and the news that North Korea is to restart its nuclear plant.
India’s Finance Minister P. Chidambaram announced that they will not hike their import tax on gold on his trip to visit Shinzo Abe in Tokyo while promoting the country as an investment destination. India is the world’s largest gold consumer and imports most of its gold. To curb the appeal and help reduce their budget deficit the Indian government has taxed gold raising tariffs in January from 4 to 6%.
NEWS Gold stretches gains as weak U.S. data hits dollar - Reuters
Gold reclaims $1,600 after manufacturing data – Market Watch
COMMENTARYHow much gold is there in the world? - BBC
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