Gold hits three-month top on shaky global economy | Reuters - Firstpost
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Gold hits three-month top on shaky global economy | Reuters

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MANILA Gold edged up to a three-month high early on Tuesday as weak global manufacturing surveys soured appetite for risky assets and pushed investors toward safe havens.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,128.80 an ounce by 0028 GMT, just off an initial high of $1,130.11, its strongest since Nov. 3.

* U.S. gold for April delivery GCcv1 gained 0.2 percent to $1,129.80 an ounce.

* Global manufacturing expansion accelerated slightly but remained weak at the start of 2016 as faster growth in developed markets failed to offset a contraction in emerging economies. In China, a gauge of factory activity fell to its lowest since mid-2012.

* Gold, typically the asset of choice in times of uncertainty, has benefitted from the volatility in other financial markets. It posted its best monthly jump in a year in January, and has gained more than 6 percent so far in 2015.

* The U.S. economy could suffer, with inflation remaining too low, if recent volatility in financial markets persists and signals a slowdown in the global economy, the Federal Reserve Vice Chairman Stanley Fischer said.

* The Fed's statement last week that it will closely monitor the global economy and financial markets lifted gold to near $1,130, as it underlined expectations that U.S. policymakers may take it slowly in raising interest rates this year.

* Reflecting growing confidence in gold, holdings of SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, rose to 21.9 million ounces on Monday, the most since Nov. 3. [GOL/ETF]

* For the top stories on metals and other news, click [TOP/MTL] or [GOL]

MARKET NEWS

* Asian shares wobbled as crude oil prices slid on rekindled oversupply fears and after downbeat manufacturing data raised concerns about global momentum. [MKTS/GLOB]

* The yen remained in the doldrums while the Australian dollar held firm as investors bet the Reserve Bank of Australia will resist the recent trend for surprise policy easings.

(Reporting by Manolo Serapio Jr.; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.

First Published On : Feb 2, 2016 07:15 IST

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