Spot gold, silver surge after weak US factory data heats up slowdown fear

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Spot gold, silver surge after weak US factory data heats up slowdown fear

On Tuesday, the 3rd of September 2019, spot gold spiked more than 1 per cent after weak manufacturing data from euro zone alongside the United States had renewed fears of a sharp downward spiral of the global economy, while growing uncertainties over a high-stake Sino-US trade talk alongside UK’s new leader Boris Johnson’s failed attempt to challenge UK lawmakers either to go ahead with a snap election or to support him on a Brexit, with or without deal by October 31st, had added to investors’ woes.

Meanwhile, in context of a flight-to-safety response among the investors, spot gold added 1 per cent to wrap up the day at $1,546.30 per ounce, just a notch shy of its six-year-peak at $1,554.56 an ounce. Besides, US gold futures scheduled to be expired by September 19th soared 1.7 per cent to $1,555.90 an ounce.

Aside from a robust gain of spot gold, silver futures’ prices had closely echoed the leads of gold’s rally and sparked a torrential dive to wrap up the day 3.7 per cent higher to $19.14 per ounce, breaching the $19 mark for the first time since October 2016.

Concomitantly, accusing a chorus of geo-political hobbles alongside horrendous manufacturing outlook all over the world behind Tuesday’s (Sept. 3rd) upsurge of silver and gold futures’ prices, a commodity strategist at TD Securities, Ryan McKay said, “Equities are on the back foot, that’s what’s keeping gold higher.

There’s a lot of uncertainty on the Brexit front, politics in Italy, protests in Hong Kong as well - a lot of stuff that’s positive for gold. ”