Gold prices were testing levels above $1,120 in Europe, with a fresh month kicking off on a positive note – the market is now gearing up to challenge technical resistance towards $1,130.
– Bullion was underpinned by signs of risk aversion, while other markets – base metals and equities – were losing ground after soft Chinese manufacturing data. China’s official manufacturing PMI for January 49.4 was down from December’s 49.7 and the sixth successive month below 50.
– Spot gold was indicated at $1,121.80/1,122.10 per ounce, up $3.60 from the Friday close, with prices broadly of a $7.00 intraday range. The data flow today in Europe and the US is dominated by manufacturing indicators but from midweek onwards financial markets will be focussed on Friday’s US January jobs report.
– Silver was assisted by short-covering, rising to $14.31/14.33 per ounce, up six cents from the previous close. In the PGMs, however, industrial metals weakness weighed on prices. Platinum was quoted at $864/869, an $8.50 decline, while palladium stood at $495/500, a $3 loss.
(Editing by Mark Shaw)