Metals Climb on Chinese Data as Precious Metals Ease

This morning gold has dipped by $5.00 to trade at 1681.55 easing down as traders are looking for more risk. This morning Chinese HSBC data supported markets with the print release above expectations showing that the Chinese manufacturing sector was expanding faster than expected. A successful vote in the US with lawmakers passing a temporary delay and suspension of the debt ceiling allowing the Treasury to fund the government and easing tensions. Gold traded mostly flat near the one month high it hit in the previous session buoyed by the monetary stimulus from the central banks. Snapping a seven day rise, spot silver dipped too.  The optimistic economic outlook is likely to dim the safe haven appeal of bullion. Reversing morning session losses, base metal complex on the LME rose with lead zinc and aluminum gaining the most. LME copper remained in the vicinity of an eleven-day high. While, the physical buying in China is quiet ahead of the Lunar New Year holidays.Continue Reading...

January 24, 2013 7:15 (GMT) | By FX Empire Analyst - Barry Norman