SMM News: Monday (November 30th) Asian time, spot gold continued to decline, continuously lost two integer levels of 1780 and 1770, the lowest hit 1764.39 US dollars / ounce, the lowest since July 2, on the one hand, the latest news shows that the UK is expected to become the first country to approve Pfizer and BioNTech SE novel coronavirus vaccine; On the other hand, China's latest November PMI data continued its performance, raising optimistic expectations of a global economic recovery, dampening risk aversion and selling spot gold.
In terms of China's economic data, data released on Monday showed that China's official manufacturing PMI grew faster than expected, indicating that the pace of economic recovery has accelerated and increased the market's risk appetite.
According to data released by the National Bureau of Statistics, China's manufacturing purchasing managers' index ((PMI)) was 52.1 percent in November, up 0.7 percent from the previous month and above the critical point for nine consecutive months, the highest since September 2017, indicating that the recovery growth of the manufacturing industry has accelerated.
Non-manufacturing PMI rose to 56.4 from 56.2 in October, above the median forecast of 56. A reading above 50 means the situation is better than the previous month.
In addition, according to data on Friday, China's industrial enterprises made a total profit of 642.91 billion yuan in October, up 28.2% from a year earlier, the fastest pace since the beginning of 2017.
The data show that China's steady recovery has continued into the last quarter of this year, and despite sporadic outbreaks in China, the manufacturing sector has not been affected.
Analysts point to a series of early indicators showing that China's economic recovery stabilized in November, supported by strong global demand for exports in the run-up to Christmas and a rise in the stock market to its highest level since 2015. China is introducing measures to boost consumption such as cars and home appliances to help support the economic recovery, which is also expected to lead to a global economic recovery.
"We believe that overall production should maintain momentum, export orders are likely to remain strong until the Western holiday season, and domestic demand is likely to continue," Johanna Chua, an economist at Huaqi Group, wrote in a report before the release of the data.
In addition, the technical selling pressure of the gold price is also relatively strong. Last week, the gold price lost the 1800 mark, which is also the key position of the 200-day moving average, increasing the downside risk of the middle line of the gold price. further support reference 1744-1747 area, 1744 for June 1 and June 11 high support, 1747 is June 23 and June 26 low support. Click on the picture to open a new window to view
In addition, while US President Trump vowed to continue the legal battle to overturn the November 3 election results, he hinted in a telephone interview that he had gradually abandoned his opposition to Biden's entry into the White House on January 20. It also boosted risk-taking in the market.
It is worth reminding that demand for physical gold in India remains robust as the fall in gold prices to a nearly five-month low has encouraged retail consumers and jewellers to buy more, and the Fed's bet on more monetary easing has helped push the dollar to a more than two-year low, which still attracts bargain-hunting for spot gold. The dollar index hit a low of 91.67 on Monday, its lowest level since May 2018.
