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Yellow metal tumbles as China’s manufacturing data improves confidence
On Monday, gold inched down because better-than-anticipated China manufacturing data soothed some fears about a deceleration in the economic surge and also spurred appetite for risky assets.
China's Caixin/Markit Manufacturing Purchasing Managers' Index went up to 50.8 from February’s outcome of 49.9. It turned out to be the strongest outcome for eight months.
Profits for the private indicator emerged on the heels of China’s official manufacturing PMI uncovered on Sunday that tacked on to a six-month maximum of 50.5 in March from February’s reading of 49.2.
In fact, the data states that China's ailing manufacturing sector is on the way to recovery, soothing worries that the world's number two economy could slump into a steeper economic downturn.
On the Comex exchange, gold futures headed south by 0.3% reaching $1,294.25 a troy ounce.
Besides this, spot gold ending up with $1,289.81 an ounce, decreased by about 0.2%, having reached its lowest value since Friday’s outcome of $1,286.35.
Market participants looked ahead to a busy week of American economic data that should provide further clarity on whether the US economy is actually losing steam or just tumbling through a mild patch.
The March American jobs report at the end of this week is going to be the key event for financial markets. Aside from the employment report, the week's calendar also comes with major American retail sales figures and also the latest data on the country’s manufacturing activity.
Evaluating the evergreen buck’s value versus its primary peers the USD index decreased by 0.2% showing 96.64, having surged to 96.91 on Friday, which is its strongest reading since March 13.
Aside from that, silver futures decreased by 0.4% showing $15.04 a troy ounce.
Palladium futures headed north by 0.5% trading at $1,348.15 an ounce. Additionally, platinum futures decreased by 0.6% showing $849.40 an ounce.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.