Gold drifted lower on March 1
Gold futures drifted lower on March 1 due to the release of upbeat US economic data. The better-than-expected US data boosted the stock market. It took the limelight away from gold on March 1. It ended February with a gain of more than 10%—the biggest monthly gain since January 2012 due to weak global economic situations. Read Why Did Gold Post its Biggest Monthly Gain in 4 Years? to learn more. On March 1, the gold in COMEX fell 0.3% to $1,230.8 per ounce.
PMIs impacted the prices
Gold started the day on a positive note. It carried the previous day’s gains due to disappointing Chinese PMI data. China’s official manufacturing PMI was 49. It was below the Market’s expectation and the previous month’s value. This supported gold prices in the earlier trading sessions on March 1. However, the sentiment reversed due to a series of strong economic releases from the US later in the day.
The US ISM manufacturing PMI data for February was 49.5. This was better than the Market’s expectations. It was also higher than the previous month’s PMI reading. This boosted the stock market. It had a negative impact on gold prices. In addition to the upbeat PMI data, the U.S. Department of Commerce also released the construction spending data on March 1. It impacted gold’s price. The construction spending for January rose by 1.5%. This was better than the Market’s expectation.
The ETFs and stocks related to gold also fell to lower price levels on March 1. Gold miners Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Harmony Gold (HMY) fell 4.82%, 1.70%, 2.98%, and 4.91%, respectively, on February 29. The VanEck Vectors Gold Miners ETF (GDX) fell by 4.18%. The SPDR Gold Shares (GLD) fell by 0.73% on March 1. The next important economic release that could impact the prices is the US Job Report. It’s scheduled to release on March 4.