Gold Futures Rise Again Safe-haven Appeal, Settle Above $1,500 Mark

Trading 02 oct 2019 Donner votre avis

Gold prices moved higher as investors rushed for the safe-haven asset after riskier assets such as equities plunged sharply on mounting recession fears after recent disappointing manufacturing data from the U.S. and eurozone.

The dollar lost ground but gold prices kept moving higher. The dollar index dropped to 98.97, losing about 0.16% from previous close, amid expectations of another interest rate cut by the Federal Reserve.

Gold futures for December ended up $18.90, or about 1.3%, at $1,507.90 an ounce.

On Tuesday, gold futures for December ended up $16.10, or 1.1%, at $1,489.00 an ounce.

Silver futures for December ended up $0.381, at $17.683 an ounce, while Copper futures for December settled up $0.0100, at $2.5705 per pound.

A report released by the Institute for Supply Management on Tuesday showed U.S. manufacturing activity continued to contract in September.

The ISM's purchasing managers index dropped to 47.8 from 49.1 in August.Economists had expected the index to inch up to 50.1.

With the unexpected decrease, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.

President Donald Trump blamed the weak manufacturing data on the Federal Reserve, which he blasted as "pathetic" in a post on Twitter.

Meanwhile, adding to signs of a slowdown in the U.S. job market, payroll processor ADP released a report on Wednesday showing private sector employment rose by slightly less than expected in the month of September.

ADP said private sector employment climbed by 135,000 jobs in September compared to economist estimates for an increase of about 140,000 jobs.

The report also showed a significant downward revision to the increase in private sector jobs in August, which was slashed to 157,000 jobs from the originally reported 195,000 jobs.

"Businesses have turned more cautious in their hiring," said Mark Zandi, chief economist of Moody's Analytics. "If businesses pull back any further, unemployment will begin to rise."

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