FX:Gold futures higher after China PMI report; U.S. data eyed
Forexpros - Gold futures edged higher during European morning trade on Thursday, hovering below the previous session’s high following the release of a pair of conflicting reports on Chinese manufacturing activity.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,724.35 a troy ounce during European morning trade, up 0.3% on the day.
Prices held in a tight trading range of USD1,718.45 a troy ounce, the daily high and a session low of USD1,711.25 a troy ounce. Gold futures fell to a seven-week low of USD1,699.65 a troy ounce on October 24.
Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 7 and resistance at USD1,730.35, the high from October 23.
The state-affiliated China Federation of Logistics and Purchasing said earlier that its purchasing managers’ index rose to a three-month high of 50.2 in October from September's 49.8. A reading above 50.0 signifies expansion.
A separate report from HSBC showed that manufacturing activity in the Asian nation improved to an eight-month high of 49.5 from September's 47.9, though it still indicated activity contracting for the 12th consecutive month.
Market players were now looking ahead to a series of important political and economic events set to unfold in early November.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.
On Friday, the U.S. will release a closely-watched report on U.S. non-farm payrolls, to gauge the strength of the U.S. labor market.
Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve, boosting the dollar and potentially weighing on the precious metal.
Political developments were likely to take center stage next week, with the U.S. presidential election on November 6 and the start of the Chinese Communist Party Congress on November 8, where a once-in-a-decade leadership change was to take place.
Euro zone developments remained in focus. Investors remained cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Elsewhere on the Comex, silver for December delivery rose 0.5% to trade at USD32.47 a troy ounce, while copper for December delivery added 0.85% to trade at USD3.547 a pound.
