Positive data chases gold prices lower

Precious metals prices were mixed in New York trade Wednesday as platinum and palladium gained but gold and silver both declined after both the United States and China reported data showing that manufacturing activity in the two nations expanded last month.

In the United States, the Institute for Supply Management said that its manufacturing index was at 56.3 in August, up from July’s reading of 55.5 and after it was expected to drop to 52.8, while in China the Federation of Logistics and Purchasing reported that its purchasing managers index was up to 51.7 in August from 51.2 in July, suggesting in both cases that factory activity was up in August.

Optimism derived from the two reports, and from gains in global equities markets during the day, sent investors looking for more risk in their investments.

December gold fell $2.20 to $1,248.10 per troy ounce in New York trade, but only after going as high as $1,256.60 earlier, while December silver dropped 4 cents to $19.30 per troy ounce.

Meanwhile, October platinum added $12.20 to $1,535.70 per troy ounce and December palladium was $18.25 percent higher to $520.10 per troy ounce.

Among base metals, December copper added almost 11 cents to $3.48 per pound in New York trade, while three-month contracts for copper gained $166 to $7,606 per tonne on the London Metal Exchange.

The news on manufacturing helped copper prices since the metal is used extensively in both manufacturing and construction.

Prices also rose for other base metals in London trade.