By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Gold futures eased slightly on Thursday, pausing from gains in the previous seven U.S. sessions, with investors gauging comments by the Federal Reserve and lackluster results from a key Chinese manufacturing survey.
Click to Play
Shipbuilders just starting to feel 2008 downturn
The 2008 global downturn is only now hitting South Korea's shipbuilders, the world's largest. As they complete orders placed before the downturn, they face a gap created by virtually no orders in 2009.
Gold for August delivery GC1Q -0.43% — the most active future — fell 0.4%, or $5.60, to $1,537.80 an ounce in electronic trades on the Comex division of the New York Mercantile Exchange in early afternoon hours in East Asia.
The benchmark July silver contract SI1Q -1.50% took a heavier hit, falling 1.2%, or 45 cents , to $36.29.
HSBC’s preliminary China manufacturing Purchasing Managers’ Index for June printed at 50.1, down from a PMI of 51.6 in May, and barely above the 50 level that separates contraction from expansion. See more on China manufacturing data.
Analysts said China’s inflation rate could peak in the 5%-6% range in the next few months, with deflationary concerns likely to come back in focus, and potentially setting the stage for Beijing to switch towards a neutral or even easy monetary-policy stance if global economic momentum cools.
Meanwhile, the Fed on Wednesday trimmed its view on economic growth and confirmed it will end its $600 billion bond-purchase program on June 30. Read more on Fed remarks.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
