Gold prices slipped on Tuesday in Asia after data suggested China’s manufacturing sector was recovering from a sharp slowdown earlier in the year.
China’s Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 50.8 from 49.9 in February, a private survey on Monday showed. That was the strongest reading in eight months and followed an uptick in the official PMI, which tracks mainly state-owned enterprises.
Global equities traded higher on Monday following the release of the survey, with Chinese stocks surging more than 2.5%.
The safe-haven gold, however, moved in the direction opposite to most commodities as investor sentiment picked up.
“Let us not forget that in 2018, market sentiment flip-flopped back and forth daily between ‘risk-on’ and ‘risk-off’ ideology,” Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas, said.