Gold futures hit 15-month high after weak manufacturing PMIs

Gold futures hit a 15-month high on Tuesday as traders reacted to weaker than expected readings on manufacturing sector activity in China, overnight, and from the US, on Monday, which might lead to less monetary policy tightening and greater demand for safe-haven assets.

Nevertheless, economists at Barclays had a more upbeat view on the most recent slate of manufacturing data.

The broker´s global manufacturing sector gauge moderated to a reading of -0.46 for April, after a "significant improvement" to -0.24% in the month before.

However, Barclays´s Apolline Menut pointed out how a three-month moving average of new orders had continued to improve, with a subindex of export orders little changed at -0.27.

"In addition, our forward-looking measure of new orders less finished goods inventories remained firm on a three-month moving average basis, boding well for future manufacturing production," Menut said.

Be that as it may, weak headline PMI numbers saw the US dollar spot index print an intra-day low of 91.919, alongside a move in dollar/yen below the psychological mark of 106.0.

In parallel, COMEX-traded gold futures for delivery in June 2016 were up by 0.01% to $1,295.80 per ounce after having reached a 15-month high earlier in the day, at $1,304.