The spot gold price managed a slight rebound during Asian trading hours on Monday after dipping last Friday as concerns over Deutsche Bank’s situation eased
Spot gold was last at $1,315.90-1,316.20 per ounce, up $4.30 from Friday’s close. Trading ranged at $1,315.05-1,319.65 so far.
The metal had fallen to as low as $1,311.95 last Friday – the lowest since September 21 – following news that Deutsche Bank was near a settlement with US regulators.
Gold had previously saw an underlying bid after the Deutsche Bank situation caused a sell-off in equities and risk-off sentiment, noted MKS Group on Monday morning.
Investors had been nervous about the uncertainty surrounding Deutsche Bank after some of its clients, among them several big hedge funds, were reported to have withdrawn securities or cash from the German lender amid concerns about its stability and their exposure.
“Strong bids around $1,310 should provide further support, however, a material move higher in equities could see $1,300 tested,” the broker said.
In data, China’s official manufacturing PMI for September was at 50.4, according to data announced by the National Bureau of Statistics (NBS) on Saturday. The figure was close to expectations of 50.5 and at the same level as August. An above 50 reading signifies expansion, and below, contraction.
China’s manufacturing sector remains in expansion mode alongside stable production and demand growths, the NBS said.
But the foundation of the manufacturing sector’s stable growth is not solid as firms continue to face operating difficulties while industries eliminate excess capacities, the Bureau cautioned.
The country’s official non-manufacturing PMI, which represents the services sector was at 53.7 in September, was up from August’s figure of 53.5.
The official PMIs added to the continued Chinese growth story and risk on mood in markets, National Australia Bank said on Monday.
In US data released Friday, the core PCE price index was as expected at 0.2 percent but personal spending and personal income undershot at 0.0 percent and 0.2 percent.
The Chicago PMI was better than expected at 54.2. Revised UoM consumer sentiment and revised UoM inflation expectations at 91.2 and 2.4 percent respectively were also better than forecasts.
A string of manufacturing PMI numbers are due from Eurozone countries as well as the US later today. The ISM manufacturing PMI, construction spending, ISM manufacturing prices and total vehicle sales from the US will also be of note.
In equities, the Dow Jones Industrial Average rose 0.91 percent to close at 18,308.15 on Friday. The Shanghai Composite gained 0.21 percent to finish at 3,004.70 on Friday.
In currencies, the US dollar index rose 0.12 percent to 95.56 recently on Monday.
In other commodities, the Brent crude oil spot price fell 0.15 percent to $49.92 per barrel, and the Texas light sweet crude slipped 0.15 percent to $47.95 so far on Monday.
In other precious metals, silver was last at $19.225/19.245, up $0.085. Platinum rose $5 to $1,023/1,029, and palladium increased $3.50 to $717/726 recently on Monday.
China is closed for week-long National Day holidays from October 1.
(Additional reporting by Ewa Manthey)
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Source: Bullion Desk News
