Gold Prices Up As US Dollar Weakens, Investors Await US Economic Data

Published June 1st, 2021 - 07:00 GMT
Gold Prices Up As US Dollar Weakens, Investors Await US Economic Data
Gold futures were up 0.47% to $1,914.25 by 11:07 PM ET (3:07 AM GMT). The dollar, which usually moves inversely to gold, was down on Tuesday. (Shutterstock)
Highlights
On the data front, investors now await key U.S. economic data, including the Institute of Supply Management manufacturing PMI to be released on Tuesday.

Gold was up on Tuesday morning in Asia, near a five-month high, as Chinese factory activity data released earlier in the day was better than expected and investors await key U.S. economic data to be released later in the week.

Gold futures were up 0.47% to $1,914.25 by 11:07 PM ET (3:07 AM GMT). The dollar, which usually moves inversely to gold, was down on Tuesday.

China's May Caixin Manufacturing Purchasing Managers Index (PMI) was 52.1, with both forecasts prepared by Investing.com and April’s reading at 51.9. The Caixin figure was above the manufacturing PMI released by the National Bureau of Statistics on Monday which read 51.

In Japan, data released earlier in the day said the Manufacturing PMI rose 53.0 in May, slightly higher than April’s 52.5 figure. But its factory activity expanded at a slower pace than the previous month due to a decrease in output and new orders despite strong external demand. Investors remain concerned that the surging number of COVID-19 cases in the country will continue to curb the economic recovery.

Elsewhere in the region, the Reserve Bank of Australia is due to hand down its policy decision later in the day.

On the data front, investors now await key U.S. economic data, including the Institute of Supply Management manufacturing PMI to be released on Tuesday. Further data include non-farm payrolls and the unemployment rate in May, due on Friday.

In precious metals, palladium rose 0.5%, silver fell 0.1%, and platinum edged up 0.2%.


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