Gold Up Against Weaker Dollar, Investors Digest China’s Economic Data

  • Commodities News
Gold Up Against Weaker Dollar, Investors Digest China’s Economic Data
Credit: © Reuters.

By Gina Lee – Gold was up on Tuesday morning in Asia, near a five-month high, as investors digested Chinese factory activity data released earlier in the day and await key U.S. economic data to be released later in the week.

Gold futures were up 0.47% to $1,914.25 by 11:07 PM ET (3:07 AM GMT). The dollar , which usually moves inversely to gold, was down on Tuesday.

China's Caixin Manufacturing Purchasing Managers Index (PMI) was 52.1, with both forecasts prepared by and April’s reading at 51.9. The Caixin figure was above the manufacturing PMI released by the National Bureau of Statistics on Monday which read 51.

In Japan, data released earlier in the day said the Manufacturing PMI rose 53.0 in May, slightly higher than April’s 52.5 figure. But its factory activity expanded at a slower pace in the previous month due to a decrease in output and new orders despite strong external demand. Investors remain concerned that the surging number of COVID-19 cases in the country will continue to curb the economic recovery.

Elsewhere in the region, the Reserve Bank of Australia is due to hand down its policy decision later in the day.

On the data front, investors now await key U.S. economic data, including the Institute of Supply Management manufacturing PMI to be released on Tuesday. Further data include non-farm payrolls and the unemployment rate in May, due on Friday.

In precious metals, palladium rose 0.5%, silver fell 0.1%, and platinum edged up 0.2%.

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