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Gold Prices Flat as Gloomy Data Underpin Haven Assets

Published 09/24/2019, 11:09 AM
Updated 09/24/2019, 11:10 AM
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Investing.com -- Gold prices were most flat Tuesday as more positive noises from the trade war were offset by some gloomy U.S. data.

The Richmond manufacturing index fell to -9 from 1 in August, while the Conference Board’s consumer confidence index slipped sharply to 125.1 from a downwardly revised 134.2 in August.

Together, the figures undid much of the feelgood factor created by Monday’s stronger-than-expected survey of U.S. manufacturing from IHS Markit, and were much more consistent with data showing slowdowns in Japan and Europe.

By 11 AM ET, gold futures for delivery on the Comex exchange were down 0.2% on the day at $1,529.15, while spot gold was up marginally at $1,522.17.

Government bond yields were lower all along the yield curve, with the 30-year Treasury losing three basis points to 2.12% and the two-year falling two basis points to 1.65%.

Eurozone bond yields also fell as the Ifo business climate index fell to a new 10-year low.

“As much as we would like to see an end to the downward trend in the German economy, today’s Ifo index is not the indicator signalling it,” said ING analyst Carsten Brzeski. “It’s a short breather, which keeps both the hopes for a bottoming out as well as the fears of another downward slide alive.”

Europe has led the way in portfolio purchases of gold this year as the European Central Bank has been forced to cut its key interest rate even further below zero. That makes gold, which carries no nominal return, more attractive to deposits and other haven assets.

Elsewhere, silver futures corrected downwards after their rise on Monday, dropping 1% to $18.52 an ounce. Platinum futures fell 0.5% to $949.40 an ounce.

Copper futures resumed their downward slide, losing 0.2% to $2.67 a pound.

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