MTECHTIPS:-Gold prices drop sharply in Asia on weak flash China PMI, market turmoil
Gold prices fell hard in Asia on Friday as investors see a slowdown in China manufacturing as ensuring continued easy policy by one of the world’s top yellow metal buyers and as continued to assess the scope for a Federal Reserve rate hike in September and geopolitical tension appear eased for now. The Markit/Caixin survey of China manufacturing showed a decline to 48.2 a 15-month-low, and well below the expected 49.7 and off from June’s final of 49.4. Final data is due in August. The flash reading suggests manufacturing conditions may be deteriorating and will raise questions about the resilience of the economic recovery despite Beijing’s confidence for a better second half. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell 1.43% at $1,0878.40 a troy ounce. Silver for September delivery dropped 1.31% to $14.508 a troy ounce. Copper for September delivery eased 0.39% to $2.367 a pound. Otherwise, China markets were relatively calm following a report in the UK press that $800 billion has fled the country as a systemic crisis brews.