Spot gold prices are trading around unchanged levels Wednesday after prices dropped to their lowest level in over a month during the previous session. Spot gold ended Tuesday’s session $20.85 lower at $1707.65/oz as prices became subject to selling pressure in tandem with a fairly sharp risk aversion session across European markets, with sentiment also not helped by a sharp drop in oil prices and other
commodities. Gold prices initially recovered during Asian traded hours this morning after China’s HSBC Flash Manufacturing Purchasing Managers Index (PMI) rose to a three-month high of 49.1 in October, also registering the most robust order books since April, suggesting that conditions may be stabilizing. Spot gold initially advanced to session highs of $1714.40/oz after the release of the Chinese flash PMI data, but prices have since fallen back to trade a session low of $1706.40/oz a few moments ago, with the market currently trading $1707.60 a troy ounce, unchanged on the session.
EasyForexNews Research Team