Gold Hits Six Week Low Level
New York (Nov 21) Gold plummeted to six weeks low level on Thursday, triggered by stronger dollar against the euro on weak Euro zone data amid Fed's tapering concern.
Weekly US jobless claims, October producer price index, Markit manufacturing PMI, Philadelphia fed manufacturing surveyfor Nov from US and Euro Zone consumer confidence for Nov are scheduled to release later today.
Asian shares were mixed Thursday with the Nikkei settling sharply up as the Bank of Japan kept policy steady in its latest review, while China and Hong Kong fell after HSBC China flash manufacturing purchasing managers data for November came in weaker than expected.
The BoJ unanimously kept its benchmark interest rate at 0.10% as expected and said the domestic economy continues to recover moderately, though the global outlook remains uncertain, initially weakening the yen which is seen good for export-oriented companies.
November flash manufacturing purchasing manager's index for China clocked in at 50.4, below a forecast of 50.8, and easing from 50.9 for the final in October, according to a release.
European stocks were lower on Thursday, as the minutes of the Federal Reserve's latest policy meeting signaled the possibility for near-term tapering of its stimulus program and as disappointing Chinese data weighed.
The euro was slightly lower against the dollar on Thursday after mixed euro zone private sector data indicated that the economic recovery in the region is faltering. The Euro quotes at $1.3430, down 0.07% and the dollar index quotes at 81.20, up 0.14%.
Data released on Thursday showed that manufacturing activity in the euro zone expanded in line with forecasts in November, but service sector activity declined unexpectedly.
Germany's manufacturing PMI rose to a 29 month high of 52.5 in November, from 51.7 in October, while the services sector PMI rose to a nine-month high of 54.5 from 52.9.
The COMEX gold futures for December delivery trades at $1,247.60 a troy ounce, down $10.40 and the Silver December quotes at $19.947 a troy ounce, down 0.111 from last close.
Local Gold futures recovered from the early losses on weak Indian currency against the greenback. The Indian value depreciated for the third day with the currency quotes at Rs 62.89, 0.52% value depreciated in a day over last close.
MCX Gold December contract quotes at Rs 30,136, up Rs 66 per 10 grams from last close. The Silver futures for the December delivery quotes at Rs 44,995, down Rs 4 per 1 kg from last close.
