Gold hit three-month highs on Wednesday, buoyed by a slower US services sector and sinking dollar, prompting investors to seek shelter in assets perceived as safer as future Fed rate hikes appeared less likely. US services sector activity slowed to a near two-year low in January, suggesting that economic growth weakened further at the start of the first quarter.
"Dollar weakness and the poor ISM number are the primary drivers this afternoon," said Mark O'Byrne, research director of bullion dealer GoldCore in Dublin. Spot gold was up 0.9 percent at $1,138.60 an ounce at 2:44 pm EST (1944 GMT), having earlier touched its strongest since October 30 at $1,145.60. Gold, an asset that thrives on uncertainty, has gained more than 7 percent since the start of 2016 on concerns over the growth outlook, especially in China, after losing 10 percent in 2015. US gold for April delivery settled up 1.3 percent at $1,141.30 an ounce. Spot silver was up 2.3 percent at $14.62 an ounce, while palladium was up 4.5 percent at $510.88. Platinum was up 3.3 percent to $878.37.
Comments
Comments are closed.