Gold reaches $1,100 as US dollar falls ahead of Chicago PMI, New York ISM and US GDP data

Gold retreated below US$1,110/oz after rising to US$1,114/oz earlier today on reports that China is set to buy the gold that IMF (International Monetary Fund) is currently shopping. Last week, IMF announced the sale of 191.3 tonnes of gold out of the total 403.3 tonnes earmarked for sale. IMF sold the first 212 tonnes to India, Sri Lanka and Mauritius last year.
The yellow metal got further support from a weaker US dollar, which declined ahead of today’s flurry of US economic data, including the Q4 US GDP data, the University of Michigan consumer sentiment index and the Chicago PMI and New York ISM updates.
Today’s recovery in global stock markets following yesterday’s sharp falls also bolstered gold, which is seen as a riskier investment alternative to the US dollar.
Gold last traded at US$1,109/oz, while fellow precious metals headed in a different direction with silver and platinum sliding to US$16.10/oz and US$1,527/oz respectively.
All major miners were on the rise today. Platinum producer Lonmin (LSE: LMI) and silver and gold miner Fresnillo (LSE: FRES) led the pack with gains of 1.8%, while fellow blue chip Randgold Resources (LSE: RRS) advanced 1.6%.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) rose marginally.
Midcaps also were in demand as gold miner Petropavlovsk (LSE: POG) added 2.8% and silver producer Hochschild Mining (LSE: HOC) climbed 1.6%. Aquarius Platinum (LSE: AQP) rose marginally.
London listed Australian gold producer Leyshon Resources (AIM: LRL) led the juniors with a gain of 8%, while Africa focused gold miner Pan African Resources (AIM: PAF) added 4.5%.
Africa operating gold miner GMA Resources (AIM: GMA) declined 4%.

http://www.proactiveinvestors.co.uk/companies/news/13805/gold-reaches-1100-as-us-dollar-falls-ahead-of-chicago-pmi-new-york-ism-and-us-gdp-data-13805.html