Precious Metals Market Report by Bill Musgrave – American Gold Exchange
Gold dipped 0.2% in choppy trade to close just under $1,191 as traders digested mixed U.S. and global economic data.
The metal initially rose above $1,195 in early trade after manufacturing surveys in three of world’s four largest economies signaled slowdowns in November. Markit reported that China’s PMI dropped to 50, indicating no growth, while factory output fell into contraction for the first time since May. Eurozone PMI skidded to a 16-months low, with factory output barely above contraction. And U.S. manufacturing stumbled to its slowest growth since January, according to Markit’s flash PMI, while new orders fell for the third straight month.
A spate of positive U.S. data, however, eroded gold’s early gains. The Conference Board’s leading indicators rose more than forecast, pointing to upbeat activity next year. In addition, U.S. consumer sentiment rose last week to a six-year high, according to the Bloomberg Consumer Comfort Index behind higher stock prices, lower gasoline prices, and improving employment prospects. And the Philly Fed region reported strong growth in business activity. Reports that core consumer inflation ticked up 0.2% in Octoberhad little effect on gold prices.
The other precious metals were mixed, with silver and palladium dropping 1% and 0.3%, respectively, while added 0.5%.
At the Comex close: December gold dipped $3 to $1,190.90; December silver lost16 cents to $16.14; January platinum picked up $6.30 to $1,205.60; and December palladium dropped 2.80 to $767.15