Happy Easter. Gold takes the spotlight once again as much of the world takes a break from markets during this Monday holiday. Prices are already up over one percent at the time of writing, pushed as high as $2,260 an ounce during the Asian morning session. Given the effects of time differences and market closures in the western hemisphere, one can only conclude that Asia is the main driver behind the recent surge in bullion prices. The People’s Bank of China was the largest buyer of gold last year amongst all other central banks but demand also remained high with private investors, many of whom are seeking safe-haven assets in light of the precarious situation in the Chinese property market.
Some promising data out of China yesterday in the form of the country’s National Bureau of Statistics PMI numbers. The manufacturing PMI in particular made for pleasant reading, coming in at 50.8 as opposed to the predicted 49.9, meaning the sector is officially in expansion as opposed to contraction. The figures were backed up this morning by the release of the Caixin manufacturing numbers, also coming in above expectations at 51.1, further confirming an expanding manufacturing sector.
Looking forward to the week ahead, we start the week with a slew of European PMI data, followed by Eurozone CPI and inflation data on Wednesday. Further down the line, we have US Jobless claims on Thursday before finally ending the week with Non-Farm Payrolls on Friday. A reminder that markets in China will be closed at the end of this week to observe Tomb Sweeping festivities.
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