After falling over 2% on Thursday, gold has again softened in Asian trade as traders digest yesterday’s strong US jobless claim data.
Bullion.Directory precious metals analysis 01 May, 2015
By Harley Salt
Co-founder, Director of Sales Trading at Bullion Index
Later today we have US ISM Manufacturing PMI data due out, the forecast is for a reading of 52.1, up from the previous reading of 51.5. The University of Michigan Consumer Sentiment is also due out, it is expected to see an improved reading of 96.1.
Apart from yesterday’s jobless claims, recent US data has been generally weak and coming in below expectations so today’s data will be will be watched closely. Should we see reading below expectations, particularly on the PMI front then we may see some bargain hunting on gold at these low levels.
The next key level on the downside for gold is US$1,173/oz, a break below this could see gold test US$1,150/oz.
Gold is currently trading at US$1,181.50/oz, down US$2.50/oz since the New York close. Silver is currently up 3 cents to US$16.13/oz.
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