Gold rose in London, heading for the longest streak of weekly gains since March, after German factory orders fell more than expected. Palladium traded near the highest price since 2001.
Factory orders fell 1.7 percent in May, the Economy Ministry in Berlin said today. That’s more than the 1.1 percent decline forecast in a Bloomberg survey. Gold futures fell as much as 1.6 percent yesterday as investors assessed the outlook for higher U.S. borrowing costs after employment data beat estimates. China’s manufacturing expanded in June at the fastest pace this year, data showed.
“Yesterday we saw the market had a bearish tinge on the better macro data coming out of the U.S. and China, so the German May orders data modestly dented some of that macro optimism,” David Wilson, an analyst at Citigroup Inc. in London, said by e-mail.
Bullion for immediate delivery rose 0.1 percent to $1,321.13 an ounce by 1 p.m. in London from $1,319.53 yesterday, when prices dropped 0.6 percent, according to Bloomberg generic pricing. The metal rose to $1,332.33 on July 1, the highest since March 24. It’s set to rise for a fifth week, the longest streak since March 14.
Gold for August delivery rose 0.1 percent to $1,321.90 an ounce on the Comex in New York on volumes that were 62 percent lower than 100-day average for this time of day. Markets in the U.S. are closed for the Independence Day holiday.