Gold Closes Higher on Positive Market Sentiment
MarketWatch
Gold futures advanced Wednesday as the dollar weakened and U.S. stocks traded higher, lifting the tide for gold and other metals.
Gold for April delivery added $9.10, or 0.5%, to settle at $1,749.50 an ounce on the Comex division of the New York Mercantile Exchange.
That was gold’s highest settlement since early December and a second straight day of gains for the metal.
Gold’s been enjoying “a slow and steady advance” in recent sessions, said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago.
“You don’t want too much, too fast,” he said. “A lot of the trading right now is about risk-on, risk-off, and with equities doing well we see an easier advance for gold.”
U.S. stocks and most markets cheered positive data on Europe’s manufacturing, and, closer to home, a report that showed improvement in private-sector employment for January, contributing to gains for most markets on Wednesday.
Overnight in Asia, data showed a mixed picture of manufacturing activity in China.
Underpinning the support for gold, the ICE dollar index, which tracks the greenback against six rival currencies, declined to 78.881, down from 79.278 late Tuesday.
A weaker greenback is a positive for dollar-denominated commodities as it makes them less expensive to holders of other currencies.
The broader metals complex traded higher, overcoming some weakness seen during Asian trading hours, with platinum leading the way.
Platinum for April added $35.10, or 2.2%, to $1,623.20 an ounce, while March palladium gained $10.35, or 1.5%, to $696.70 an ounce.
March silver rose 55 cents, or 1.6%, to $33.81 an ounce.
March copper advanced 5 cents, or 1.4%, to $3.84 a pound.
HSBC’s Chinese manufacturing survey remained stuck in contraction in January, while the government version indicated the sector is now growing.
Payroll processor Automatic Data Processing Inc. said Wednesday a survey indicated U.S. private-sector payrolls rose 170,000 in January, marking the second year of job gains for the private sector.
Separate data on manufacturing from Germany, the U.K. and the euro zone also came in positive, giving markets another layer of support.
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