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AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


7/2/2019: Gold surges on growth worries

Source: Bill Musgrave, American Gold Exchange

Austin — Gold surged 1.4% to close at $1,408 as slowing global growth and renewed trade-war tensions with Europe eroded risk appetite, boosting demand for safe-haven assets.

Morgan Stanley released data today showing global manufacturing is shrinking for the first time since 2016. Separately, JPMorgan's index of worldwide industrial output fell into contraction for the second straight month, dropping to the lowest level in seven years.

The data follows weak factory reports from the world's two largest economies. Caixin China's PMI for manufacturing fell into contraction in June, hammered by its ongoing trade war with the U.S. Meanwhile, the ISM showed U.S. manufacturing grew in June at the slowest pace in three years, also because of trade tensions.

Meanwhile, one day after calming markets with news that negotiations will resume with China, the White House intensified its trade war with Europe, threatening new tariffs on an additional $4 billion in goods from the European Union.

Benchmark 10-year Treasury yields fell sharply, hovering around a 30-month low as investors sought safety. Yields on British government bonds also plunged after the Bank of England raised concerns that trade tensions and a no-deal Brexit could heavily damage the global economy.

The dollar slipped 0.2% from a two-week high, supporting gold and other commodities priced in it for global trade by making them less expensive overseas.

Gold's strong gains came despite a plunge in crude prices of nearly 5%, driven by demand worries because of slower global growth. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with silver and palladium adding 0.3% and 0.5%, respectively, while platinum slipped 0.4%.

At the Comex close: August gold surged $18.70 to $1,408; September silver added 5 cents, to $15.24; October platinum dropped $3.70 to $833.50; and September palladium rose $8.10 to $1,552.80 an ounce.

  

Metal Ask      Change
Gold $2,216.24           Price Change Up Arrow $15.45
Silver $24.81           Price Change Down Arrow $-0.01
Platinum $907.83           Price Change Down Arrow $-2.53
Palladium $1,039.25           Price Change Up Arrow $10.66
In US Dollars