Yesterday, Gold spot rose to $1266.39 after the U.S. PMI release. The index fell by 5.7 points to 51.3
Investment in haven assets increased as first data of this week filed negative result. During the week ahead there are important releases like Unemployment Rate and Nonfarm Employment Change. Employment is likely to get affected on falling jobs in manufacturing industry (that could have also support precious metals). Except U.S., U.K. Manufacturing Index has also fallen by 0.5points from previous 57.2. Emerging markets currencies are already on downside pressure.
These all led to slump in equity markets and investment flow in haven assets. At U.S. Dow fell by 2.08%, Nasdaq down by 2.60% and S&P 500 dropped 2.28%. Europe and Asian indices are also negative.
Shares of SPDR Gold Trust, largest gold backed exchange traded product, gained by $1.23 yesterday.The metal has gained near to 6.4% this year compare to fall of 28% last year.
If U.S. economy doesnt perform as per expectation there are less chances of further reduction in stimulus which is a good sign for bullions. We may see volatile movement in precious metals during the week ahead.
At 0730GMT Gold spot is at $1257.15 down by 0.19%, Silver down by 0.09% at $10.39, Platinum and Palladium fell by 0.70% and 0.38% at $ 1377.50 and $700.65 respectively.