Gold gains in Asia amid dropping Caixin manufacturing PMI
On Tuesday, gold edged up following April’s weaker than expected Caixin manufacturing poll in China, thus increasing prospects of continued monetary easing.
Some analysts point out that the long-term view on global interest rates are still below trend even after major banks have started raising rates.
In New York, June delivery gold futures gained 0.08%, trading at $1,296.80 per troy ounce. Additionally, May delivery silver futures traded at $17.825, showing a 0.03% descend, while May delivery copper futures lost 0.66% at 2.250.
Gold dared to grow higher than $1,300 per ounce overnight for the first time for 15 minutes, notwithstanding light volume due to the May Day holiday. Meanwhile, the evergreen buck dipped to another 9-month minimum reacting to soft American manufacturing data.
On Monday, the Institute for Supply Management reported that its April’s Manufacturing Index fell 1%, staying at 50.8, less than expected reading of 51.4.