By Paul Ploumis (ScrapMonster Author)
December 02, 2015 02:38:33 AM
(Kitco News) - Gold prices ended the U.S. day session slightly higher Tuesday. Gold and silver are seeing mild technical bounces following strong selling pressure recently that drove both prices to multi-year lows late last week. Tepid short-covering in the futures markets and bargain hunting in the cash markets are featured in gold and silver early this week. February Comex gold was last up $1.90 at $1,067.10 an ounce. March Comex silver was last up $0.019 at $14.105 an ounce.
The U.S. dollar index was weaker on this day, which was also a mildly bullish underlying element supporting the precious metals markets. However, the greenback bulls are maintaining the firm overall technical advantage as the dollar index hit a seven-month high Monday.
The U.S. ISM November manufacturing purchasing managers’ (PMI) index was released today and came in at 48.6 versus 50.1 in October. A reading of 50.5 was expected. The November figure was a six-year low. However, the weaker PMI number in November was offset by some other upbeat U.S. data that was released Tuesday.
Meantime, in overnight news China’s official PMI fell to a three-year low of 49.6 in November from 49.8 in October. A number of 49.9 was expected. A reading below 50.0 suggests contraction. Data from the world’s second-largest economy continues to show a deceleration in economic growth. That’s bearish for the raw commodity sector, including the precious metals, as China is the world’s largest raw commodity importer.
There was upbeat economic data coming out of Europe. The Euro zone manufacturing PMI was reported at 52.8 in November versus 52.3 in October. A reading of 52.8 was expected. The Euro zone unemployment rate fell to a nearly four-year low, it was also reported Tuesday—at 10.7% in October from 10.8% in September. The unemployment rate in the Euro zone is twice the level of that of the U.S.
World stock markets were firmer Tuesday, on investor hopes of more monetary policy stimulus measures coming from the major central banks of the world, not including the U.S. Federal Reserve.
On tap later this week is an OPEC oil cartel meeting on Friday and the regular meeting of the European Central Bank on Thursday. Many expect the ECB to announce additional monetary policy stimulus measures at Thursday’s meeting. The important U.S. jobs report is due out Friday. The key non-farm payrolls number is expected to be up around 205,000 in November.
Courtesy: Kitco News