The gold price was in positive territory on Thursday, bolstered by comments from the ECB that it may take longer than previously expected for inflation to move back to two percent due to China concerns and weak oil prices.
Having bottomed out close to $1,120, it is now comfortably above $1,130 – it was last quoted at $1,136.20/1,136.50 per ounce, up $6.20 on Wednesday’s close.
A softening in the dollar also provided support – it was last at 1.1215 against the euro – as did a spate of forecast-missing PMI numbers from China, the US and EU yesterday.
“Gold and silver prices have rebounded on a pick-up in jitteriness in other markets,” FastMarkets analyst William Adams said.
Japan returned to the market today following a three-day national holiday. Data from this country was mixed – its flash manufacturing PMI undershot at 50.9, while all industries activity was flat at 0.2 percent.
In other data, the Gfk German consumer climate at 9.6 was below the forecast 9.6 although German Ifo business climate at 108.5 was better than the predicted 107.8. Italian retail sales at 0.4 percent beat the forecast 0.2 percent.
Core durable goods orders, unemployment claims, durable goods orders and new home sales are due from the US later. As well, Federal Reserve chair Janet Yellen is set to speak.
Elsewhere, platinum prices have recovered somewhat to $941/946 per ounce after dropping to a fresh six-year low on Wednesday of $928.
The white metal found some support from a rebound in Volkswagen stocks – up 6.4 percent – following the announcement that chief executive Martin Winterkorn will step down after the company forged US car emissions tests.
“Tokyo returned to see the metal around 4 percent lower in JPY terms than when they last traded and in aggressive morning buying sent the metal from $932 to a session high of $957 before interest tapered in afternoon trade, “MKS noted.
Palladium, which was the star performer yesterday – it gained 6.9 percent after China said it will accelerate construction of electric car facilities – was last at $644/649 per ounce, a $4 loss.
“The PGMs have been split by the VW news and the potential fall-out. Although platinum seems the most likely to suffer, both PGMs have become oversold so renewed relative weakness in platinum may well attract some barging hunters from outside the diesel passenger vehicle industry,” FastMarkets’ Adams said.
