Daily Market Update

Gold Rises 1.1% On Safe Haven Demand As Stocks Fall After Poor U.S. Data

Today’s AM fix was USD 1,253.00, EUR 927.19 and GBP 766.83 per ounce.
Yesterday’s AM fix was USD 1,246.50, EUR 922.58 and GBP 762.39 per ounce.

Gold climbed $12.90 or 1.04% yesterday to $1,257.80/oz. Silver rose $0.19 or 0.99% to $19.35/oz.

Gold is marginally higher for a third day and is consolidating on yesterday’s gains despite significant sell offs in stock markets overnight. The Nikkei was down 4.2% and the FTSE is off another 0.5% this morning.

Gold in U.S. Dollars, 3 Day – (Bloomberg)

The very poor ISM manufacturing data in the U.S. yesterday led to a sudden jump in gold prices of 1.5% and futures closed 1.6% higher. Data yesterday showed that manufacturing from China to the U.S. and the U.K. slowed as a selloff in emerging market stocks and currencies deepened.

The ISM Manufacturing dropped by its most since 2008. It missed by the most on record and new orders collapsed at the fastest pace since December 1980. The employment sub-index also tumbled from 55.8 to 52.3.

Bullion for immediate delivery rose 0.4% to $1,261.15 an ounce, and traded at $1,258.99 at 4:51 p.m. in Singapore.

The sell off in U.S. and European stock markets shows that developed markets will not be insulated from emerging market turmoil. The global economy is vulnerable to a slow down, potentially a sharp one, with ramifications for all markets.

Gold is extending its 3.3% monthly advance in January as concern that global growth may be faltering is leading to haven demand.
Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide – Essential Guide To Storing Gold In Singapore

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A la Recherche du Temps Perdu

Mark O'Byrne
Executive Director


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