Gold prices see strong turnaround on weak U.S. data, flare-up in Hong Kong civil unrest

(Kitco News) – Gold prices have erased modest overnight and early-U.S.-trading losses and are posting solid gains in late-morning action Tuesday. A weaker-than-expected U.S. manufacturing report that saw the ISM manufacturing index fall to 47.8 in September from 49.1 in August helped to turn the gold market around. The ISM data falls into the camp of the monetary policy doves who want to see the U.S. Federal Reserve further ease interest rates. The ISM report also dropped the U.S. dollar index down from its new high for the year that was scored earlier today, and also dropped the U.S. stock indexes below unchanged on the day. Also supporting safe-haven gold and silver is a significant escalation in protesting in Hong Kong, on China’s national holiday for the Communist Party. Reports said one protester was shot with live ammunition by police, and the demonstrations were becoming more violent. It also appears President Trump’s administration could be falling deeper into a quagmire regarding the House of Representatives’ impeachment inquiry. December gold was last up $16.00 an ounce at $1,489.20.

By Jim Wyckoff
For Kitco News

Contact jwyckoff@kitco.com
www.kitco.com

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