Gold prices edged higher on Tuesday’s trading session after rising nearly 2 percent in the previous session. Weak U.S. data continues to raise hopes that the Federal Reserve will not end its stimulus anytime soon.
As of 09:39 (GMT+3), gold for immediate delivery edged down to trade at $ 1407.07 an ounce after opening at $1,411.23, having earlier hit a high of $1,414.83, and a low of $1,406.29.
The contraction in the U.S. manufacturing ISM numbers in May suggested that the Federal Reserve will delay its withdrawal from quantitative easing into next year.
On Monday, the U.S. Institute for Supply Management said that manufacturing activity unexpectedly contracted last month, as the manufacturing PMI fell to 49.0 in May from 50.7 in April, while economists had expected a PMI reading of 51.0.A reading below 50 indicates contraction
Among other commodities
- Silver fell 0.90% to $ 22.59
- Platinum edged down 0.62% to $ 1,489.15
- Palladium inched 0.34% down to $ 754.70
Wednesday will be on focus with the release of ADP payrolls. Economists have forecast that the ADP data will show private-sector employers added 170,000 jobs in May, compared with 119,000 in April.
Wednesday`s numbers to watch will include the ISM`s release of its U.S. services-sector Purchasing Managers` Index (PMI) for May. The latest Fed Beige Book will be the main attraction.
On Thursday, initial claims for unemployment benefits will hog thelimelight, a day before the big payrolls report from the U.S. government. Initial jobless claims are projected to have slipped to 345,000 in the week that ended June 1, from 354,000 the previous week.
Investors will be turning their attention to the most awaited nonfarm payrolls report, to be released Friday. The report provides more clues on the health of the world`s largest economy. Stronger data could prompt the U.S. Federal Reserve to end its bullion-friendly bond-buying program earlier than expected.
The USDIX is currently trading around 82.91 after opening at 82.75, having so far hit a high of 82.91 and a low of 82.61.
Holdings in the SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, remained unchanged at 1,013.15 tones on Monday, after rising for the first time in three weeks on Wednesday.