Gold little-changed as market awaits US return
LONDON (Sept 3) Gold held just above its one-week low on Tuesday morning in Europe, ahead of the return of US trade after Labor Day, eyeing global key events, including decisions on military intervention in Syria.
Spot metal was quoted at $1,388.80/1,389.60 per ounce, down $2.25 on the close. So far this week, the metal has lost about 0.5 percent or $6.90 as the rhetoric over a broad-based military strike against Syria was toned down.
"So far, the gold price is holding its own fairly well despite the better economic data and firmer US dollar," analysts at Commerzbank said.
The euro was last at 1.3165 against the US currency, slipping a quarter of a cent lower, having lost more than half a cent since the start of the week.
"At least psychologically, the forthcoming strikes in the South African gold mining industry – announced for today by the biggest union of mine workers – should also be lending some support," Commerzbank's analysts added.
"That said, we currently believe that gold’s short-term potential has been fully exploited for now."
"In addition we suspect there may be some caution ahead of the FOMC meeting later this month as speculation surrounding QE tapering continues," FastMarkets analyst James Moore said.
"The metals may maintain their recent ranges, although with senior US politicians to discuss the Syria issue later and US and French leaders calling for action gold could find some upside momentum."
Better-than-forecast global manufacturing PMI numbers released on Monday also weighed on the price of the metal.
In data today, the August Chinese non-manufacturing PMI came in at 53.9, down from 54.1, while July Japanese average cash earnings at 0.4 percent were lower than the forecast 0.8 percent. There was no change in August Spanish unemployment - the forecast had been for 5,200 net fewer unemployed.
Later on today, the market awaits the August US ISM manufacturing PMI and on Wednesday, the trade balance number and the Beige Book.
Exchange traded gold which had seen some positivity in recent days remained unchanged on Monday, registering 1,974.7 tonnes in those funds tracked by FastMarkets.
In wider markets, the Nikkei made solid gains, closing up 405 points or nearly three percent at 13,978, but the FTSE 100 was last down about a quarter of a percent or nearly seven points at 2,767.
In the rest of the complex, silver was virtually unchanged, gaining just one cent to $24.09/24.14, but platinum was up $3 at $1,518/1,523 and palladium gained $4 to $716/722 per ounce.
