Gold rises as weak US data fuels global slowdown worries

By: |
Published: October 3, 2019 7:59:24 AM

Spot gold was up 0.1% at $1,500.59 per ounce at 0105 GMT. Prices rose 1.4% on Wednesday, the biggest one-day percentage gain since Aug. 23.

U.S. gold futures were down 0.1% at ,506.4 an ounce.U.S. gold futures were down 0.1% at ,506.4 an ounce.

Gold prices extended their gains on Thursday as weaker-than-expected U.S. jobs data reinforced global economic slowdown fears and raised expectations of further monetary policy easing by the U.S. Federal Reserve.

FUNDAMENTALS
* Spot gold was up 0.1% at $1,500.59 per ounce at 0105 GMT. Prices rose 1.4% on Wednesday, the biggest one-day percentage gain since Aug. 23.
* U.S. gold futures were down 0.1% at $1,506.4 an ounce.
* The dollar nursed losses amid signs of a slowdown in U.S. economic growth and a deepening of global trade tensions.
* Asian stocks tumbled on Thursday after New York markets slumped overnight after the United States opened a new trade war front by saying it will impose tariffs on $7.5 billion of goods from the European Union.
* The Trump administration put 25% tariffs on French wine, Italian cheese and single-malt Scotch whisky in retaliation for European Union subsidies on large aircraft.
* The ADP National Employment Report on Wednesday showed private payrolls growth in August was not as strong as previously estimated, and said “businesses have turned more cautious in their hiring,” with small enterprises becoming “especially hesitant.”
* New York Federal Reserve Bank President John Williams said on Wednesday that while the U.S. economy looked to be in a “favorable place” when viewed through the rearview mirror, the outlook through the windshield ahead was “mixed.”
* Germany’s leading economic institutes on Wednesday slashed their growth forecasts for Europe’s biggest economy for this year and next, blaming weaker global demand for manufacturing goods and increased business uncertainty linked to trade disputes.
* British Prime Minister Boris Johnson made a final Brexit offer to the European Union on Wednesday, pitching a possible compromise for a last-minute exit deal that was cautiously welcomed by the EU though the two sides still remain far apart.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.32% to 923.76 tonnes on Wednesday from 920.83 tonnes on Tuesday.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.