Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rebounded 1.1% to close at $1,489 as weak economic data in the US and Europe undermined risk appetite and drove investors into safe havens.

The ISM manufacturing index contracted to a 10-year low in September, fueling fears that the decade-long US expansion is grinding to a halt because of the ongoing trade war with China. Separately, the Chicago PMI business barometer fell for the third time in four months, reading 47.1, the lowest level since 2009.

Eurozone manufacturing data contracted by the most in almost seven years, with industrial output in Germany, Europe's economic engine, sinking to the lowest level since 2009.

The Atlanta Fed cut its forecast for real US GDP growth in the third quarter from 2.1% to 1.8%. Meanwhile, the World Trade Organization slashed its 2019 forecast for global trade growth from 2.6% to just 1.2% because of tariffs.

Wall Street fell on the pessimistic outlook, with the Dow and S&P 500 dropping 1%. Treasurys rallied alongside gold, pushing yields lower, as investors sought safety. The dollar dropped 0.3%, lifting gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were mixed, with silver rising 1.8% while platinum and palladium dropped 0.4% and 1%, respectively.

At the Comex close: December gold gained $16.10 to $1,489; December silver picked up 30 cents $17.30; January platinum slipped $3.10 to $886.10; and December palladium fell $16.80 to $1,630.70 an ounce.