MW: Gold edges higher on positive market sentiment
By Claudia Assis and Virginia Harrison, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures inched higher Wednesday, trying to extend their winning run to a second day as the dollar weakened and market sentiment was largely positive.
Gold for April delivery GC2J +0.58% added $7.30, or 0.4%, $1,747.50 an ounce on the Comex division of the New York Mercantile Exchange.
Positive data on Europe’s manufacturing, and, closer to home, a report that showed private-sector employment improving lifted most markets on Wednesday.
Earlier in Asia, data showed a mixed picture of manufacturing activity in China.
The ICE dollar index DXY -0.72% , which tracks the greenback against six rival currencies, declined to 78.884, from 79.278 in North American trade late Tuesday.
A weaker greenback is a positive for dollar-denominated commodities as it makes them less expensive to holders of other currencies.
The broader metals complex traded higher, overcoming some weakness in Asian trading hours.
April platinum PL2J +1.80% added $26, or 1.6%, to $1,614.10 and ounce, while palladium for March delivery PA2H +1.25% gained $9.65, or 1.4%, to $698.35 an ounce.
March silver SI2H +1.81% rose 62 cents, or 1.9%, to $33.89 an ounce.
March copper HG2H +0.55% advanced 2 cents, or 0.6%, to $3.81 a pound.
HSBC’s Chinese manufacturing survey remained stuck in contraction in January, while the government version indicated the sector is now growing. Read more about China’s manufacturing data.
Payroll processor Automatic Data Processing Inc. said Wednesday nonfarm payrolls rose 170,000 in January, marking the second year of job gains for the private sector. Read more on nonfarm payrolls.
Manufacturing data from Germany, the U. K., and the euro zone came in positive, giving markets another layer of support.
Germany’s purchasing managers index rose to 51 in January, exceeding market expectations, while the euro-zone’s PMI rose to 48.8 last month, slightly above market expectations. In the UK, PMI rose to an eight-month high of 52, up from a revised reading of 49.7 in December.
