Chinese factory activity, US Treasury yields surge drag Gold down
China’s faster-than-expected factory activity growth and U.S. Treasury yields conspired to take down gold in Asian trade on Wednesday.
Gold futures slipped 0.42% at $1,679 as the dollar, which normally trades inversely to gold, gained on Wednesday.
China released its manufacturing Purchasing Manager’s Index (PMI) that saw a 51.9 reading in March. It fared better than last month’s rate at 50.6. For the non-manufacturing PMI, figures were also lively as they showed a 56.3 reading. It went higher from February’s reading at 51.4.
The U.S. 10-year Treasury yield improved 1.776% on Tuesday, marking its highest level since Jan. 22. Another encouraging news was the 109.7 March reading of the Conference Board CB Consumer Confidence Index which yielded its highest level since the pandemic began.
Waiting to be released are data from the U.S. employment report for the month of March, which includes non-farm payrolls. These figures will be released on Friday.
In other precious metals, silver held its ground at $24.01, while platinum and palladium gained 0.5% and 0.7%, respectively.