🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

PRECIOUS-Gold falls from 4-wk high on China liquidity measures, stronger dollar

Published 03/02/2020, 01:40 pm
Updated 03/02/2020, 01:43 pm
© Reuters.  PRECIOUS-Gold falls from 4-wk high on China liquidity measures, stronger dollar
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
XPT/USD
-
XPD/USD
-

Feb 3 (Reuters) - Gold eased on Monday after scaling a near four-week peak, as China's central bank injected liquidity into its markets to help support firms hit by a coronavirus epidemic, with a stronger dollar holding back bullion as well.

Chinese authorities have pledged to use various monetary policy tools to ensure liquidity remains reasonably ample and to support firms affected by the outbreak in Wuhan, which has so far claimed more than 350 lives.

FUNDAMENTALS

* Spot gold XAU= fell 0.4% to $1,582.82 per ounce by 0145 GMT, having gained more than 1% in the previous session. U.S. gold futures GCv1 edged higher by 0.1% to $1,588.80.

* The coronavirus epidemic has claimed 361 lives so far in China, and a first death outside of the country was reported in the Philippines, as investors braced for volatility in Chinese markets as they reopen after the Lunar New Year break. China's central bank said it will inject 1.2 trillion yuan ($174 billion) worth of liquidity into the markets via reverse repo operations on Monday. The dollar also firmed on Monday making gold expensive for holders of other currencies. USD/

* Asian markets slid on fears over the hit to world growth from the rapidly spreading coronavirus. MKTS/GLOB China's factory activity expanded at its slowest pace in five months in January, with the virus adding to the risks facing the world's second-largest economy, a private survey showed on Monday. Total gold imports by top consumer China more than trebled in December 2019 from the previous month, but were down 28% on a yearly basis, data from the country's customs website showed on Friday. Physical gold markets in major Asian hubs saw activity dwindle last week as the coronavirus epidemic took a toll on demand, especially with China out of action. GOL/AS

* Hedge funds and money managers cut their bullish positions in COMEX gold contracts in the week to Jan. 28, data showed on Friday. CFTC/

* Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.03% to 903.21 tonnes on Friday. GOL/ETF

* Palladium XPD= rose 0.4% to $2,286.71 an ounce, silver XAG= fell 0.7% to $17.91, and platinum XPT= rose 0.7% to $963.27.

DATA/EVENTS (GMT) (January) 0500 India IHS Markit Mfg PMI 0850 France Markit Mfg PMI 0855 Germany Markit/BME Mfg PMI 0900 EU

Markit Mfg Final PMI 0930 UK

Markit/CIPS Mfg PMI Final 1400 US

ISM Manufacturing PMI 1445 US

Markit Mfg PMI Final

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.