The gold price was hovering with the dollar shifting higher and the Chinese economy slowing more than expected. Spot gold was last at $1,189.20/1,190.00 per ounce, down $2.70 on Tuesday’s close – it struck its lowest in two weeks at $1,184.00 in yesterday’s session.
“Precious metals continue their aimless meandering as the dollar remains the focus. A sell off in the greenback yesterday lifted prices temporarily, but dollar buying has resumed and precious metals are once again back in the doldrums,†Marex Spectron’s David Govett said.
“It is now even more likely the PBoC will need to further cut interest rates to support the economy, but with credit levels very high in the economy, there will be limitations as to how much monetary policy can support the economy,†MKS said in a note.
“Market participants clearly believe that the Chinese figures mean lower economic growth and thus more subdued physical demand for gold.†Commerzbank noted.
“Such concerns build onto the difficult environment PGM producers face in South Africa which also include rising wages, lower ore grades and inadequate infrastructure. We see these concerns as bullish for the PGMs,†HSBC’s James Steel said.
By Premji
