Gold is slightly higher today in thin volume, as Hong Kong and Canadian markets are closed for national holidays. Gold experienced some short-covering as physical demand returned in China. Demand for investment gold bars in China has spiked premiums to levels not seen since the April price crash.
Massive demonstrations in Egypt, estimated by the army to number in the millions, has led to a small amount of safe haven demand in gold. Oil is also slightly higher, perhaps for the same reason. Silver is getting a little boost from news of inflows into silver ETFs.
U.S. stocks are poised to open higher, on expectations of improved ISM manufacturing data. Analysts expect to see a rebound from the nearly four-year low posted in May.
In Asia, the official PMI for June was stated as 50.1, down from 50.8 in May. The HSBC PMI was 48.2 in June, compared to 49.2 in May. The independent HSBC numbers get attention from analysts, as it is generally assumed that the Chinese government takes an optimistic view of domestic economic conditions. In Japan, the Nikkei was up 1.3% to close at a four-week high.
The composite Eurozone PMI came in at 48.8, which signifies contraction, but it is up from May's 48.3. Eurozone unemployment was recorded at 12.1%
All markets, including precious metals, may be more volatile than normal this week. In addition to the Canadian and Hong Kong holidays today, the U.S. markets will be closed Thursday for the 4th of July holiday, and few traders will be back at work on Friday.