Gold Prices Drop Following Upbeat US Manufacturing Data
ICM Brokers | Sep 03, 2014 02:26AM ET
Crude Oil
Oil prices dropped on Tuesday due to mounting concerns that global supply is far outreaching demand, while a stronger U.S. dollar also bruised the commodity. Crude drops on global supply concerns, firming U.S. dollar Supply concerns send oil prices plummeting While the U.S. economy continues to show signs of improvement, the global economy may be battling headwinds, concerns of which that battered crude prices earlier. China’s official manufacturing index ticked down to 51.1 from 51.7 in July, while the HSBC manufacturing index slowed to 50.2 from 50.3 the previous month. Both figures missed expectations, which sent prices falling amid concerns that demand in the world's second-largest consumer of oil and major manufacturing hub may be slipping. Meanwhile, a stronger U.S. currency, the product of upbeat data, pushed prices lower, as a firmer greenback makes crude prices less attractive on dollar-denominated exchanges, especially in the eyes of investors holding other currencies..
Gold
Gold prices dropped on Tuesday after an upbeat U.S. manufacturing report fueled demand for the U.S. dollar, which trades inversely with the yellow metal. Gold plummets as manufacturing gauge sparks dollar rally Gold drops on robust U.S. factory data The greenback firmed and gold fell after the Institute for Supply Management reported that its manufacturing purchasing managers’ index jumped to 59.0 in August from 57.1 in July, defying analysts' calls for the index to tick down to 56.8. The employment index grew for the fourteenth consecutive month the report said, registering 58.1, down 0.01 points from 58.2 in July. Also in the U.S., the Census Bureau reported earlier that U.S. construction spending rose to 1.8% in July from -0.9% in June, whose figure was revised up from -1.8%. Analysts had expected U.S. construction spending to rise to 1.0% last month.
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