Manufacturing surveys from the major economies were in focus, with the Euro zone August manufacturing purchasing managers index (PMI) in line with expectations at 51.7
Gold and silver prices are a bit firmer in midday U.S. trading Tuesday, and off their earlier highs. However, both metals are still in a strong technical position on the charts. The precious metals are being lifted in part by a wilting U.S. dollar index that today hit another two-year low. October gold futures were last up $3.70 at $1,974.20. December Comex silver prices were last up $0.131 at $28.725 an ounce.
Global stock markets were mostly higher overnight. The U.S. stock indexes are higher at midday. The Nasdaq hit another record high today, with the S&P again hitting a record high Monday. Stock splits and the Dow Index realignment Monday have helped to boost the indexes early this week. Gold and silver bulls feel confident their metals are performing well despite rallying stock markets and risk aversion that is not keen in the marketplace at present.
In focus today were manufacturing surveys for August from the major economies. The Euro zone August manufacturing purchasing managers index (PMI) came in at 51.7, which was in line with expectations but a bit below July’s reading of 51.8. A reading above 50.0 suggests growth in the sector. Meantime, China’s Caixin manufacturing PMI for August was 53.1 versus 52.8 in July and 52.5 forecast. The China August PMI is reportedly the best in over 10 years. U.S. PMI number for August came in at 56.0, which was well above the forecast at 53.5 and did knock the gold and silver markets down from their highs.
The Chinese yuan has appreciated to its highest level against the U.S. dollar in more than a year, currently trading around 6.85 to the greenback, due in part to the Chinese economy getting closer to being back to full speed than that of the U.S., following the Covid-19 lockdowns. Higher interest rates in China are also drawing more global investor interest in China assets.
The important outside markets today see Nymex crude oil prices higher and trading around $43.15 a barrel. The U.S. dollar index is a bit firmer at midday. The yield on the U.S. Treasury 10-year note is trading around 0.725% today.