Gold struggles to maintain $1,900 mark

Gold started the Asian session today bearish, but remained near its 10-year high. The indecisiveness in the direction is due to the Chinese Caixin services economic data and investors not being too optimistic on key U.S. economic data that is scheduled to be released today and tomorrow.

Gold futures is down 0.45% currently trading at $1,897.76. The commodity is currently struggling to maintain its grip on the $1,900 mark.

The U.S dollar index, which usually moves inversely to gold, is currently up 0.18% for the day, to trade at $90.067. This bullish sentiment arises from the drop in the 10-year U.S. Treasury yield to 1.62%.

China’s Caixin Services Purchasing Managers Index (PMI) Data released earlier in the day was 55.1 in May, which is above the 50-mark indicating expansion. The reading also shows the Caixin Manufacturing Purchasing Managers Index (PMI) which was released on Tuesday, increased to 52 in May, the highest level since December 2020.

In Japan, the services PMI data in May was 46.5, below April’s 49.5, while in Australia, retail sales 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.”

In Europe, the European Central Bank said it would not change the size of its asset purchase program for now but indicated that it could start the tapering process later in 2021.

Investors will now look to the U.S. initial jobless claims that is scheduled to be released later today and non-farm payrolls (NFP) scheduled to be released on Friday.

For other precious metals, silver is currently down 0.75% trading at $27.99, palladium is down 0.28%, trading at $2,852 and platinum is down 0.70%, trading at $1,185 as of the time of writing this report.

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