Gold Prices Gain on Weak China PMI Data

Investing.com - Gold prices gained on Tuesday in Asia on the back of weaker-than-expected China PMI data for the month of April.

Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were up 0.3% at $1,285.75 per ounce by 1:30 AM ET (05:30 GMT).

The official manufacturing PMI and the Caixin PMI for the April period both came lower than expected.

Asian stocks fell on Tuesday following the release of the China data, although the Shanghai Composite and the SZSE Component traded higher.

Gold prices were under some pressure earlier this week as data showed 9-1/2 year highs in April's U.S. consumer spending. The data boosted risk in equity markets and lowered appetite for safe havens like gold.

The personal consumption expenditures price index excluding food and energy slowed to 1.3% in the 12 months through March from 1.8% the previous month.

Traders are also keenly eyeing China-U.S. trade talks as the U.S. and China are ready to kick off the latest round of negotiations this week in Beijing.

Earlier, U.S. Treasury Secretary Steve Mnuchin told the New York Times that negotiations are in "the final laps” while U.S. President Donald Trump said last week that he would soon host Chinese leader Xi Jinping at the White House and might sign a possible agreement on trade there.

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