Gold Down, Hovers Near Five-Year Highs Following China Caixin Services Data

By Gina Lee – Gold was down on Thursday morning in Asia, but remained near five-year highs, as investors digested China’s Caixin services economic data and await key U.S. economic data for clues about the economic outlook.

edged down 0.13% to $1,907.45 by 11:57 PM ET (3:57 AM GMT) but was still above the $1,900-mark. The , which usually moves inversely to gold, inched up on Wednesday and the benchmark slipped below 1.60%.

Data released earlier in the day said China’s was 55.1 in May, above the 50-mark indicating expansion. The reading follows the released on Tuesday, which increased to 52 in May, the highest level since December 2020.

In Japan, the data in May was 46.5, below April’s 49.5, while in Australia,  grew 1.1% month-on-month in April.

Meanwhile, in the U.S., Philadelphia Fed President Patrick Harker said on Wednesday that the U.S. Federal Reserve should start discussing the time frame to “slowly, carefully move back on our purchases at the appropriate time.”

Across the Atlantic, the European Central Bank said it would not change the size of its asset purchase program for now at its meeting on Jun. 10 but indicated that it could start the tapering process later in 2021.

On the data front, investors now await U.S. due late in the day, and to be released on Friday.

In other precious metals, silver inched down 0.1%, while palladium and platinum edged up 0.2%.

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