1. Gold hits 3-month top on shaky global economy

Gold hits 3-month top on shaky global economy

Gold edged up to a three-month high early on Tuesday as weak global manufacturing surveys soured appetite for risky assets and pushed investors toward safe havens.

By: | Singapore | Published: February 2, 2016 8:59 AM
GOLD

Gold edged up to a three-month high early on Tuesday as weak global manufacturing surveys soured appetite for risky assets and pushed investors toward safe havens. (AP)

Gold edged up to a three-month high early on Tuesday as weak global manufacturing surveys soured appetite for risky assets and pushed investors toward safe havens.

FUNDAMENTALS

* Spot gold was little changed at $1,128.80 an ounce by 0028 GMT, just off an initial high of $1,130.11, its strongest since Nov. 3.

* U.S. gold for April delivery gained 0.2 percent to $1,129.80 an ounce.

* Global manufacturing expansion accelerated slightly but remained weak at the start of 2016 as faster growth in developed markets failed to offset a contraction in emerging economies. In China, a gauge of factory activity fell to its lowest since mid-2012.

* Gold, typically the asset of choice in times of uncertainty, has benefitted from the volatility in other financial markets. It posted its best monthly jump in a year in January, and has gained more than 6 percent so far in 2015.

* The U.S. economy could suffer, with inflation remaining too low, if recent volatility in financial markets persists and signals a slowdown in the global economy, the Federal Reserve Vice Chairman Stanley Fischer said.

* The Fed’s statement last week that it will closely monitor the global economy and financial markets lifted gold to near $1,130, as it underlined expectations that U.S. policymakers may take it slowly in raising interest rates this year.

* Reflecting growing confidence in gold, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 21.9 million ounces on Monday, the most since Nov. 3.

* For the top stories on metals and other news, click or

MARKET NEWS

* Asian shares wobbled as crude oil prices slid on rekindled oversupply fears and after downbeat manufacturing data raised concerns about global momentum.

* The yen remained in the doldrums while the Australian dollar held firm as investors bet the Reserve Bank of Australia will resist the recent trend for surprise policy easings.

Tags: Gold
  1. No Comments.

Go to Top