Gold was little changed on Tuesday, hovering below the previous session’s record peak as fears over the pace of economic recovery amid surging coronavirus cases were offset by upbeat U.S. manufacturing data.
Spot gold was down 0.1% at $1,975.57 per ounce, about $9 shy of the all-time high hit in the previous session. U.S. gold futures rose 0.4% to $1,994.20.
Gold is in “wait-and-see mode” for new impulses after the PMI data, which signalled that the economy has found a bottom in the manufacturing sector and an improvement could be seen, said Quantitative Commodity Research analyst Peter Fertig.
World shares hit five-month highs, helped by strong U.S. manufacturing data which showed activity accelerated to its highest level in nearly 1-1/2 years in July.
Manufacturing activity across the euro zone expanded for the first time since early 2019 last month, as demand rebounded after more easing of the coronavirus-induced curbs.
On the technical front, gold prices are facing strong resistance at $2,000 per ounce, but any news regarding new monetary stimulus from the U.S. Federal Reserve could trigger a break, ActivTrades chief analyst Carlo Alberto De Casa said.
U.S. lawmakers said they had made progress in talks on a new coronavirus relief bill.
Coronavirus cases continue to surge in the United States and elsewhere. The World Health Organization warned that the road to normality would be long, with some countries requiring a reset of strategy.
Global central banks have rolled out massive stimulus measures and cut interest rates to mitigate the economic damage caused by the pandemic, helping gold rise more than 30% so far this year.
Silver was up 0.3% to $24.32 per ounce, platinum gained 0.9% to $924.50 and palladium rose 0.8% to$2,101.44.
– CNBC.