Gold futures retreat from record as China PMI data boosts risk appetite

Forexpros – Gold futures pulled back from record highs on Tuesday, as better-than-expected data from China buoyed Asian and European equities markets and supported demand for riskier assets.
  
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,882.65 a troy ounce during European late morning trade, down 0.39%, after hitting the day’s low of USD1,871.18.
 
Gold topped USD1,900 for the first time on Monday and has set record highs in five of the last six trading days.

A preliminary reading of China’s August purchasing managers’ index edged up to 49.8 in August from a final reading of 49.3 the previous month.

A number below 50 indicates contraction in the sector, but the report lifted market sentiment, following speculation that the reading could have been much weaker.

A separate report showed that Germany’s manufacturing purchasing managers’ index remained unchanged at 52.0 in August, beating forecasts for a decline to 50.8.

Gold remained supported following data showing that Germany’s ZEW index of economic sentiment fell sharply in August, as fears over the outlook for global growth weighed.

Meanwhile, speculation continued that Federal Reserve Chairman Ben Bernanke may indicate that further monetary easing could be necessary when he speaks at an economic symposium in Jackson Hole, Wyoming, later in the week.

Elsewhere on the Comex, silver for September delivery tumbled 1.00% to trade at USD42.87 a troy ounce.




Forexpros - Forex Pros offers a diverse set of professional tools for Forex, Futures and CFDs. These include real-time data streams, technical and fundamental analysis by in-house experts, and a widely used economic calendar and Forex News.