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Gold Futures Settle At Over 2-week High On Safe-haven Appeal

Gold Futures Settle At Over 2-week High On Safe-haven Appeal

Gold prices rose to more than 2-week high on Monday as traders sought the safe haven commodity amid worries about global economic growth.

Uncertainty about the U.S. and China agreeing on a trade deal anytime soon, and worries about tensions in the Middle East also contributed to the yellow metal’s rise.

Gold futures ended with strong gains even as the dollar stayed firm above the flat line right through the day’s session.

The dollar index was up 0.15%, at 98.66 despite coming off an early high of 98.83.

Gold futures for December ended up $16.40, or about 1.1%, at $1,531.50 an ounce, the best close since September 4.

On Friday, gold futures for December ended up $8.90, or about 0.6%, at $1,515.10 an ounce. Gold futures gained about 1% last week, their first weekly gain in a month.

Silver futures for December ended up $0.862, at $18.711 an ounce, while Copper futures for December settled at $2.6115 per pound, gaining $0.0050 for the session.

Survey data from IHS Markit showed the euro area private sector moved close to stalling at the end of the third quarter. The flash composite output index fell unexpectedly to a 75-month low of 50.4 in September from 51.9 in August.

The Purchasing Managers’ Index for services slid to 52.0 from 53.5 in August. The expected reading was 53.0, while the manufacturing PMI declined further, to 45.6 from 47.0 in August. The score was forecast to rise to 47.5.

Germany’s private sector contracted the most since late 2012, while France private sector expansion eased to the lowest level in four months in September.

Waning optimism about a potential U.S.-China trade deal helped gold’s uptick. Following the Chinese cutting short a visit to the U.S. last week and President Donald Trump indicating he is not in a hurry to reach an agreement, it now seems the two countries are unlikely to agree on any trade deal in the near future.

The material has been provided by InstaForex Company – www.instaforex.com