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

PRECIOUS-Gold prices ease as strong U.S. data lifts dollar, yields

Published 23/11/2019, 06:37 am
© Reuters. PRECIOUS-Gold prices ease as strong U.S. data lifts dollar, yields
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
XPD/USD
-

* Palladium on track for best week since mid-September

* U.S. manufacturing output, services activity pick up in November

* Trump says trade deal with China 'potentially very close'

(Updates prices)

By K. Sathya Narayanan

Nov 22 (Reuters) - Gold prices edged lower on Friday as the dollar and Treasuries strengthened after data showed U.S. manufacturing output and services activity picked up, limiting demand for the yellow metal.

Spot gold XAU= was down 0.1% at $1,462.97 per ounce by 1:21 p.m. ET (1921 GMT), and was set for a 0.3% weekly loss.

U.S. gold futures GCv1 settled unchanged at $1,463.60 per ounce.

U.S. manufacturing output accelerated in November to its fastest pace in seven months and services activity also picked up more than expected, a survey of purchasing managers showed on Friday. data in the U.S. just strengthens the interpretation that the Federal Reserve is going to stay on the pause here, for the next few meetings," said Ryan McKay, a commodity strategist at TD Securities.

"That means rates (Treasuries) and the dollar continue to move higher, which constrains gold." USD/ US/

The U.S. central bank, after cutting benchmark rates for the third time this year, had emphasised that it will keep interest rates on hold until the economy takes a downturn.

"Fear from the long drawn out trade war seems to be losing its sting as markets price in the possibility that no deal may be reached in the next few months," Silver Bullion sales manager Vincent Tie said.

"I believe a greater catalyst to volatility in gold prices now are the actions of the Federal Reserve to expand their balance sheet once again."

The metal, considered as a safe asset during times of political and economic uncertainties, has jumped about 14% so far this year, which could be its best year in nine, mainly propelled by United States' trade war with China.

U.S. President Donald Trump said that a trade deal with China is "potentially very close" and that he stands with both the people of Hong Kong, amid massive protests in the region, and Chinese President Xi Jinping.

The U.S. Congress on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights, to China's displeasure. markets are kind of pricing in just a further delay in trade (deal). The situation is so fluid, which is frustrating," said Edward Moya, a senior market analyst at OANDA.

Among other precious metals, silver XAG= slipped 0.4% to $17.02 per ounce, but was up for the week, while platinum XPT= fell 2.5% to $891.74.

Palladium XPD= climbed 0.8% to $1,774.05 per ounce and with gains of more than 4% so far this week, the auto-catalyst metal was on track for its biggest weekly increase since mid-September.

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.