YEREVAN, May 2. /ARKA/. On Tuesday, May 1, during the Asian trading session precious assets’ quotes were tumbling due to small number of trades caused by the closed markets on holidays. Weak data from China’s purchasing managers’ index didn’t bring any optimism either. The index advanced to 53.3 versus 53.1 whereas many experts expected it to reach 53.6. Nevertheless, during the European session precious metals recovered their losses due to U.S. dollar’s drop. At the same time the market participants demonstrated moderate optimism on the eve of the U.S. macroeconomic data publication.
However, at the beginning of the American trading session precious metals’ prices fell after ISM published purchasing managers’ index of the USA. Positive data moderately encouraged the investors. PMI rose to 54.8 in April against 53.4 in March, whereas slip to 53.0 was projected.
As a result, gold prices dropped by 0.38% to 1,659.49 USD per troy ounce. Silver, platinum and palladium prices followed that of gold. Palladium prices fell the most, by 0.88% to 677.80 USD per troy ounce. Silver quotes slip by 0.64% to 30.89 USD, and platinum prices- by 0.30% to 1,567.5 USD per troy ounce.
Stronger than expected U.S. macroeconomic data and strong U.S. dollar also put a pressure on the quotes of the precious metals. Along with this the investors continue stay cautious on the eve of receiving important economic statistics from the U.S. labor market. The statistics is forecasted to be published on May 4 and it can shed light on U.S. Federal Reserve’s position related to the necessity of the third phase of prompting economy.
Today the quotes of precious metals will depend on U.S. and Euro zone’s macroeconomic statistics as well as U.S. dollar’s dynamics. Of U.S. news the market participants will focus on the number of the employed defined by ADP agency in April. Of European news we should highlight final publication of PMI index for industrial sector in April and data from the labor market in March. The justified forecasts and moderately positive economic statistics from Euro zone, as well as worse than expected data from overseas will support the precious metals as soft monetary and credit policy of the USA will continue.
And if data from the U.S. labor market is better than expected, what in turn may provoke U.S. dollar’s purchase, metals’ quotes will be pressured. The anticipated price fluctuation range for gold on Wednesday may be 1,643 – 1,664 USD per troy ounce, and for silver- 30.25 – 31.43 USD per troy ounce.-0-
Mikael Verdyan, an analyst at FOREX CLUB, specially for ARKA news agency.
The opinion of the author does not necessarily reflect that of the agency.
