Gold Higher After China on Safe Haven and Technical Trading

Gold prices are moderately higher in early U.S. trading Monday, on continued safe-haven demand and technical buying interest. The market price is not far below last week’s nearly three-month high. April Comex gold was last up $6.10 at $1,122.40 an ounce. March Comex silver was last up $0.047 at $14.29 an ounce.

There was more downbeat economic data coming out of China Monday. The January official China manufacturing purchasing managers index (PMI) was reported at 49.4 versus 49.7 in December, for the sixth month in a row of a lower reading than the previous month. A number of 49.6 was expected for the January report. A reading below 50.0 suggests contraction in the sector. The services sector, or non-manufacturing, PMI for China came in at 53.5 in January versus 54.4 in December. Chinese stock indexes fell on the PMI reports.

Meantime, the Euro zone manufacturing PMI came in at 52.3 versus 53.2 in December. The January number was right in line with forecasts. European stocks were slightly lower in midday dealings Monday.

U.S. stock indexes were pointed toward weaker openings Monday morning. The weaker worldwide stock market postures Monday are supportive for safe-haven gold.

Nymex crude oil prices are modestly lower to start the trading week and hovering near $33 a barrel. The other key “outside market” finds the U.S. dollar index weaker Monday morning.

U.S. economic data due for release Monday includes personal income and outlays, the U.S. manufacturing PMI, the global manufacturing PMI, construction spending, and the ISM manufacturing report on business.

via Kitco

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