The spot gold price rose during Asian trading hours on Monday as it stayed supported by post-Brexit global political and economic uncertainty, and expectations of more stimulus measures from world central banks.
Spot gold was last at $1,356.40-1,356.80 per ounce, up $15.80 from Friday’s close. Trading ranged at $1,340.58-1,357.30 so far.
“Despite high net speculative positions and ETF holdings, the current environment is conducive for further investor and speculative buying because of heightened uncertainty from the Brexit shock and the need to protect portfolios by buying safe-haven assets,” Boris Mikanikrezai, a metals analyst at FastMarkets, said.
“But we need to stay alert in case of a sudden reversal in sentiment and in prices once the fear factor fades,” he added.
Expectations of further easing by some central banks have increased due to the political and economic uncertainty brought on by Brexit – hopes were further strengthened by softer Chinese manufacturing PMI last Friday.
The Caixin Chinese manufacturing PMI for June came in at 48.6, which was below forecast of 49.1 and May’s number of 49.2. It was the index’s third monthly decline in a row and marked the steepest deterioration in manufacturing conditions since February.
In currencies, the US dollar index fell 0.01 percent to 95.63 so far on Monday.
In commodities, the Brent crude spot price fell 0.61 percent to $50.32, and the Texas light sweet crude spot price eased 0.57 percent to $48.94 recently on Monday.
The Shanghai Composite is up 1.07 percent to 2,963.92 so far on Monday.
In US data released last Friday, the ISM manufacturing PMI for June came in at 53.2, above forecast of 51.3, while the final manufacturing PMI for June was at 51.3 – a tad lower than market consensus of 51.4.
It is a quiet day for data on Monday with the US closed for Independence Day celebrations – only Spanish unemployment change, EU Sentix investor confidence and PPI in the Eurozone are of note later today.
In other precious metals, silver surged to a fresh two-year high of $21.13 on Monday –it was last at $20.36/20.395, up $0.612. Platinum increased $7 to $1,059/1,065, and palladium gained $10.50 to $608/615 recently on Monday.
Like gold, silver and PGMS are also benefitting from the post-Brexit economic uncertainty and possibility of more policy easing by global governments.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 292.30 yuan per gram and December silver was flat at 4,419 yuan per kilogram.
The post Gold rises on economic uncertainty, silver hits fresh 2-year high appeared first on The Bullion Desk.
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Source: Bullion Desk News
