Gold & Silver Edge Upward in light trading
London (Apr 23) Precious metals are modestly higher in early U.S. trading Wednesday, as some more short covering and bargain hunting are featured following recent selling pressure. A weaker U.S. dollar index Wednesday is also supportive for the precious metals markets. June gold was last up $5.80 at $1,286.90 an ounce. Spot gold was last quoted up $2.80 at $1,287.00. May Comex silver last traded up $0.099 at $19.47 an ounce.
Key Chinese economic data out Wednesday saw the HSBC April manufacturing PMI come in at 48.3 in March versus 48.0 in April. A PMI reading below 50.0 suggests contraction in the sector. The market place has been concerned about a slowing pace of China economic growth in recent months—even though China’s economic numbers are the envy of all major industrial countries.
Meantime, the European Union’s flash services PMI for April was 52.5 versus 52.2 in March. The EU’s manufacturing PMI was 53.3 in April versus 53.0 in March. The U.S. flash PMI number is out Wednesday morning, too.
The Russia-Ukraine crisis had de-escalated early this week. However, at mid-week tensions are rising again after Ukraine accused pro-Russian separatists of torturing Ukraine citizens and shooting at a Ukrainian jet. U.S. Vice President Joe Biden was in Kiev Tuesday for talks with Ukrainian officials. He warned the Russians to back off.
This situation is likely flare up again to a front-burner matter in the market place, and likely sooner rather than later.
Reports Wednesday said demand for physical gold from Chinese consumers is picking up.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the flash manufacturing PMI, new residential sales and the weekly DOE energy stocks report.
