Investors looked toward upcoming U.S. labor market data and comments from Federal Reserve officials
Bullion prices ended the day lower on Tuesday, 01 December 2015. Gold futures settled with a loss on Tuesday as investors looked toward upcoming U.S. labor market data and comments from Federal Reserve officials for clues on whether the central bank will decide to lift interest rates when it meets later this month.
Gold for February delivery on Comex fell $1.80, or 0.2%, to settle at $1,063.50 an ounce after posting gains in the previous session, while March silver finished less than half a cent lower at $14.083 an ounce.
The U.S. dollar index was weaker on this day, which was also a mildly bullish underlying element supporting the precious metals markets. World stock markets were firmer on Tuesday, on investor hopes of more monetary policy stimulus measures coming from the major central banks of the world, not including the U.S. Federal Reserve.
Also on Tuesday, U.S. manufacturing data was downbeat, with the Institute for Supply Management's manufacturing index falling in November to its lowest level since 2009. The U.S. ISM November manufacturing purchasing managers' (PMI) index was released today and came in at 48.6 versus 50.1 in October. A reading of 50.5 was expected. The November figure was a six-year low. However, the weaker PMI number in November was offset by some other upbeat U.S. data that was released on Tuesday.
On tap later this week is an OPEC oil cartel meeting on Friday and the regular meeting of the European Central Bank on Thursday. Many expect the ECB to announce additional monetary policy stimulus measures at Thursday's meeting. The important U.S. jobs report is due out on Friday. The key non-farm payrolls number is expected to be up around 205,000 in November.
Fed Chairwoman Janet Yellen will speak at separate events Wednesday and Thursday. The employment data are expected to further confirm that the Fed is on track to deliver its first interest-rate hike in nearly a decade when it meets later this month.
Meantime, in overnight news China's official PMI fell to a three-year low of 49.6 in November from 49.8 in October. A number of 49.9 was expected. A reading below 50.0 suggests contraction. Data from the world's second-largest economy continues to show a deceleration in economic growth. That's bearish for the raw commodity sector, including the precious metals, as China is the world's largest raw commodity importer.
There was upbeat economic data coming out of Europe. The Euro zone manufacturing PMI was reported at 52.8 in November versus 52.3 in October. A reading of 52.8 was expected. The Euro zone unemployment rate fell to a nearly four-year low, it was also reported Tuesdayat 10.7% in October from 10.8% in September. The unemployment rate in the Euro zone is twice the level of that of the U.S.
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