Gold holds flat, copper prices higher ahead of HSBC China PMI final

Investing.com - Gold prices held flat in Asia on Wednesday ahead of the HSBC (LONDON:HSBA) final manufacturing estimate for March in China and a series of key survey and data sets from Japan and Australia.

A busy start to the second quarter with Australia releasing the AI Group Manufacturing Index for March is at 0930 Sydney time (2230 GMT). In February the index gave back 3.6 points just when it looked set to capture the 50.0 mark.

In Japan, the first quarter Tankan business survey is due at 0850 Tokyo time (2350 GMT). The diffusion index (DI) for sentiment among major manufacturers is expected at plus-16 in March, up from plus-12 in December for the first rise in two quarters.

Then comes February building approvals data at 1130 (0030 GMT). Expectation is for a 4.0% month-on-month fall after a 7.9% gain in January. The RBA's March Commodity Price Index is due at 1630 (0530 GMT) which showed a 2.7% month-on-month fall in February and 20.6% in year-on-year terms.

In China, the March CFLP manufacturing and services PMI at 0900 local time (0100 GMT) with a dip to 49.7 expected from February's 49.9. Then the HSBC final PMI is due at 0945 (0145 GMT) with 49.3 expected. Investors were shaken by the flash reading showing a surprising fall to 49.2 from February's final 50.7, with slack domestic demand taking the blame.

On the Comex division of the New York Mercantile Exchange, gold for June delivery was flat at $1,183.20 a troy ounce.

Elsewhere, silver futures for May delivery rose 0.17% to $16.627 a troy ounce.

Copper futures for May delivery gained 0.19% to $2.744 a pound.

Overnight, gold futures edged lower on Tuesday amid a modest uptick in the U.S. dollar on the final day of trading in March, as the precious metal posted its second consecutive monthly loss.

Global investors also awaited a potential deal regarding the destabilization of Iran's nuclear program. Iran and a group of six major world powers reportedly moved closer to a preliminary accord on Tuesday afternoon in Lausanne, Switzerland, but had yet to reach a deal ahead of a midnight deadline. There were indications that the most complex issues would be deferred for a final agreement in three months.

In a briefing with reporters on Tuesday afternoon, White House press secretary Josh Earnest said talks with Iran could extend into Wednesday. Earnest added that the White House is interested in continuing negotiations on Tuesday as "long as they are productive."

Elsewhere, Greece failed to reach an initial deal with its troika of creditors deemed necessary to stave off bankruptcy. Describing Greece's proposal of austerity measures as a "list of ideas," rather than "a concrete plan," officials from the European Union and the International Monetary Fund dismissed the Greek package of reforms measures that are required to unlock critical aid.

Greece's inability to reach a deal with its creditors has stoked fears that it could leave the European Union and eventually default on its sovereign debt.