Gold rebounds off two-month low on bleak US data

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Gold rebounds off two-month low on bleak US data

On Tuesday, the 1st of October 2019, safe-haven gold had witnessed an upsurge of nearly 1 per cent, reverting from a steep loss experienced earlier in the session when it had breached a nearly two-month low figure, as US dollar gave up gains following release of another series of simmering economic data, stoking fears of a global-scale slowdown further and forcing the investors’ to seek safety on safe-haven commodities likes of gold.

In point of fact, US ISM (Institute for Supply Management) data released on GMT 20.00, October 1st, which displayed a much-downbeat depiction of US manufacturing activity, sent jitters in to the financial markets across the globe.

According to Tuesday’s (October 1st) US ISM data, US manufacturing activity was dropped to a nearly decade-low figure which in effect had confirmed a correction course for the US economy. Meanwhile, adding that the latest series of downbeat US economic data had bolstered investors’ bet over another rate-cut this year, a senior commodities strategist at RJO Futures, Phillipe Streible said on Tuesday (October 1st) market closure, “It shows there might be significant corrections in the economy and traders are going back into safety right now.

This weaker data might support another Fed rate cut and as a result, metals might get a bonus move higher. ” Quoting statistics, on Tuesday’s (October 1st) market wrap-up, the precious metal rose 0.8 per cent to $1,483.11 per ounce after breaching its nearly two-month low figure of $1,458.50 earlier in the session, while US gold futures scheduled to be expired by October 19th rounded off the day 1.1 per cent higher to settle down at $1,489.01 per ounce.