Gold Falls on Global Manufacturing Growth Expectations

Gold futures fell for a second day as signs of economic growth in China and Europe curbed demand for the precious metal.

A Purchasing Managers Index for the manufacturing industry in the euro area rose to 50.7 in October from 50.3, London-based Markit Economics said today. Another report showed Chinese factory activity increased. Holdings in exchange-traded products backed by gold dropped 0.6 percent this week, according to data compiled by Bloomberg.

“Without seeing a pickup in ETP holdings, the near-term outlook still looks like one where the price action will be driven by short-term speculative and technical decisions,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a report.

Gold for December delivery declined 0.8 percent to $1,235.80 an ounce by 8:01 a.m. on the Comex in New York. Prices fell 0.5 percent yesterday.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza