Gold jumps to two-month high on recovery concerns
Precious-Gold continued its upside trend that started at the end of July today reaching two-month high on worries global recovery is receding.
Spot gold is trading at $1248.68 an ounce after recording a high of $1250.55 and a low of $1245.00.
Yesterday, the Fed minutes showed that policy makers would use another round of stimulus if the economy continued to show lackluster data, revealing that easing monetary policy is no sure decision this month.
Data released the previous day showed improvement in US housing and consumer confidence, yet it could not outweigh the series of downbeat data released recently.
Gold added $11.30 or 0.91% to close at $1247.22 an ounce yesterday. Gold Price was setin London on Tuesday at $1246.00 per ounce declining from $1233.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, soared 3.95 metric tons to 1,298.55 on August 31.
Today, ISM manufacturing for August is expected to show decline 52.8 from 55.5 while ADP employment change will reach 15 thousands in August from 42 thousands in July, yet the main highlight of the week will be Friday's non-farm payrolls.
Gold has gained 5.6% in August, the largest advance since April, on concerns from the United States and analysts are expecting demand on bullions to increase further in the coming period as slowdown in growthis expected to continue this year.
On the other hand, gold may face some sell off as the rise to two month high may prompt investors to lock in gains. Also, Asian shares bounced today boosted by better-than-expected manufacturing growth in China and GDP figures in Australia which may put another downside pressure on the shiny metal.
The rise in stocks,which dropped sharply last month, gave an impetus to oil which rebounded today to $72.10 a barrel from yesterday's closing at $71.62, taking advantage also from the drop in US dollar.
The dollar index, which tracks the dollar movements against a basket of major currencies, slipped to 82.85 compared with the day's opening of 83.11.
Among other precious metals, platinum rose to $1525.00 from the opening price of $1522.50, palladium edged up to $502.50 from $500.00, and silver rallied to $19.40 from $19.33, as of 08:10 GMT.