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Gold prices flat but momentum still high

Published 09/03/2019, 11:18 PM
Updated 09/03/2019, 11:21 PM
© Reuters.
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Investing.com  –  Gold prices remained almost flat amid ongoing demand for safe-haven assets.

Gold Futures for December delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.19%, at $1,552.75 per ounce by 11:10 PM ET (03:10 GMT).

Despite a small setback this morning, gold still traded higher than ever and it has already been up 20% this year. The benchmark 10-Year Treasury yield hit its lowest level since July 2016, and the ongoing trade war between the U.S. and China has caused worries over a global recession.

Bearish U.S. economic data also supported gold. U.S. Institute of Supply Management reported that its purchasing managers’ index for August fell to 49 versus 51.2 in July, which further fuelled the interest in the yellow metal.

Goldman Sachs (NYSE:GS) said earlier this week that gold prices were likely to advance further as central banks continue their buying of bullion bars and demand for gold ETFs continues to rise.

On the trade war front, no progress has been made. As the tariffs entered their third day, the U.S. and China have yet to release any signal of confirming the next trade talks. More tariffs on both sides will take effect in December.  

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