Gold was consolidating on Wednesday morning in London, remaining supported after weak US data pushed the dollar lower.
– The spot gold price was last little changed at $1,348.25/1,348.65 per ounce. Trade has ranged narrowly from $1,347.15 to $1,352.60 – its highest since August 19 – so far.
– On Tuesday, the US ISM non-manufacturing PMI at 51.4 undershot the forecast 55.4, as did the IBD/TIPP economic optimism index at 46.7 – a reading of 48.6 had been anticipated.
– “The precious complex is consolidating towards the top of yesterday’s ranges and all looking poised for another leg higher,” MKS noted. “Sentiment has certainly changed since yesterday’s poor ISM release, with US dollar remaining on the back foot as the chances of a Fed rate hike in September have diminished even further.”
– The dollar index fell as low as 94.76 on Wednesday – its softest since August 26 – and was last at 94.90.
– In the other precious metals, silver was little changed at $19.905/19.960 per ounce while platinum at $1,095/1,102 was up $2.50 and palladium at $696/704 was $6 higher. For the PGMs, with South Africa’s AMCU declaring talks with producers deadlocked, the chance of strikes has risen, FastMarkets’ William Adams said.
(Editing by Mark Shaw)
The post Gold consolidates around $1,250/oz, more price upside likely appeared first on The Bullion Desk.
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Source: Bullion Desk News
