Gold held a gain after a measure of U.S. manufacturing unexpectedly fell deeper into contraction, fanning concerns that the trade war is hurting global growth and strengthening the case for further interest cuts from the Federal Reserve.
Spot gold steady at $1,478.90/oz at 9:27am in Singapore. Price ends +0.5% Tuesday in rebound from the lowest level since Aug. 6. Bloomberg Dollar Spot Index steady after -0.1% Tuesday from the highest level in more than two years.
Bullion flipped from a loss to a gain on Tuesday after the Institute for Supply Management’s factory index fell to 47.8 in September, the lowest since 2009. The International Monetary Fund expects a more significant global slowdown than it did three months ago, said First Deputy Managing Director David Lipton, adding it’s difficult to see a recovery if trade uncertainty persists.
Source : Bloomberg