Gold swung between gains and losses as investors weighed expectations that the U.S. Fed Reserve will start to curb stimulus against increasing physical
Today, the markets will be keeping a close eye on the economic releases from Germany and the UK. The German GDP is expected to increase along with the private consumption and government spending, which should support gains in the euro and extend the gains in gold prices. The eurozone’s consumer confidence in the evening may also support the shared currency and an upside in gold prices. The United Kingdom’s GDP is also expected to improve, which would support gains in the pound against the dollar and lead to gains in gold prices. The US dollar is trading at 81.60 in the green this morning.
Industrial metals prices rose yesterday after manufacturing data for August from top metals consumer China suggested the world’s second biggest economy might be stabilizing and its demand for commodities could pick up. China’s HSBC/Markit flash August PMI rose back into expansionary territory to 50.1, well above consensus expectations of 48.2. This provides further evidence of stabilization in the Chinese economic backdrop and has helped support growth sensitive currencies, like AUD and CAD and commodity prices, copper is up 1.7% since yesterday’s close. Copper is trading at 3.337 up 5 points this morning after yesterday’s climb. Higher Germany and UK GDP along with positive US new home sales should remain favorable for international copper prices.
Silver climbed back into the $23 range trading this morning at 23.127 with a gain of 92 points as traders took advantage of positive precious metals and industrial metals to buy the metal. With stronger commercial demand and a rise in the appeal of precious metals, silver is enjoying a double header.