Gold leaps over 1% amid waning market sentiment
On Friday, gold prices leapt over 1%, still keeping to last week’s 27-month peaks as ongoing uncertainty following the Brexit vote as well as worries over a slowdown in China gave support to gold.
In New York, August delivery gold futures went up 1.08%, hitting $1,334.90 per troy ounce. The August contract concluded Thursday’s trading session 0.47% lower, getting to $1,320.60 per ounce.
Futures were about to gain support at $1,311.60, Wednesday’s minimum and resistance at $1,355.60, the peak of June 24 as well as a 27-month peak.
Market participants were quite cautious because financial markets kept recovering from the UK’s shocking decision last week to abandon the European Union.
By the way, on Thursday, Mark Carney, BoE chief indicated that extra stimulus might be required over the summer. The given statement sparked expectations for an approaching rate decrease.
Meanwhile, market sentiment weakened after Friday’s data revealed that Chinese Caixin manufacturing purchasing managers’ index sagged to 48.6 in June from 49.2 last month, compared to hopes for expectations for a drop to 49.1.