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Gold drops as global data points to a cooling economy

Published 09/30/2012, 09:11 PM
Updated 09/30/2012, 09:13 PM
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Investing.com - Gold prices dropped in Asian trading on Monday after Chinese factory figures coupled with Japanese and U.S. sentiment data fueled fears that the global economy continues cooling, which sent investors snapping up safe-haven dollar positions.
 
Gold and the dollar normally trade inversely with one another.
 
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.30% at USD1,768.65 a troy ounce, up from a session low of USD1,766.85 and down from a high of USD1,768.95 a troy ounce.
 
Gold futures were likely to test support at USD1,755.35 a troy ounce, Thursday's low, and resistance at USD1,785.65, Friday's high.
 
Soft Chinese factory data sent gold prices falling on sentiment the global economy continues softening.
 
The HSBC China Manufacturing purchasing managers index came to 47.9 for September from 47.6 in August.
 
A reading of 50 separates expansion and contraction.
 
Meanwhile in Japan, big manufacturers remained pessimistic over the economy during the July-September period.
 
The Bank of Japan reported earlier that the Tankan Manufacturing index fell to a seasonally adjusted -3 in the third quarter, from -1 in the second quarter.

Analysts had expected Tankan Manufacturing index to fall to -3 in the last quarter.
 
In the U.S., meanwhile, the Chicago purchasing managers' index contracted for the first time since September 2009, dipping to seasonally adjusted 49.7 compared to 53.0 August.

Analysts had expected the Chicago PMI to remain unchanged at 53.0 in September.

The Thomson Reuters/University of Michigan's final index on consumer sentiment for September fell to a seasonally adjusted 78.3 from 79.2 the previous month.

Analysts had expected the index to fall to 79.0 in September.
 
Elsewhere on the Comex, silver for December delivery was down 0.71% and trading at USD34.332 a troy ounce, while copper for December delivery was down 0.64% and trading at USD3.731 a pound.







 

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