US: Markit Manufacturing PMI in February rose to 54.3

With investors tuned into the impending situation surrounding the sequestration, gold prices has spent European trading entrenched in negativity. Indeed, the yellow metal bottomed out at 1564.45 (intraday minimum), however the publication of very weak economic data in the United States cast doubt on the economic strength, thought to be so optimistic as recently as yesterday afternoon. At the onset of the US open, gold prices have recovered and pared all of their losses, storming back above their 20, 50 and 200-SMA en route to 1587.05 (intraday maximum) – in these moments however, the price has eased slightly to USD $1582.85 per oz.