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Gold Prices Slip but Regain $1,500 Level as Weak Data Attract Safe-Haven Demand

Published 10/03/2019, 12:42 AM
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Investing.com - Gold prices slipped on Thursday in Asia but regained the $1,500 level overnight after weak data from the U.S. and Hong Kong dampened investor sentiment.

Gold futures for delivery on the Comex exchange were $1,505.05 by 12:31 AM ET (04:31 GMT), down 0.2%.

The safe-haven metal traded higher earlier in the day after a weaker-than-expected report on private-sector hiring in September, combined with Tuesday’s disappointing ISM Manufacturing PMI data, sent stocks lower.

The weak data increased the likelihood of more rate cuts from the U.S. Federal Reserve. According to Investing.com’s Fed Rate Monitor Tool, the implied probability of another cut before the end of the year is now around 87.5%, while the chance of action at the October Federal Open Markets Committee Meeting has risen to just under 75% from 64% a week ago.

Ongoing political unrest in Hong Kong is also in focus. Hong Kong police fired six live rounds during National Day violence, with one police officer shooting a young protestor in the chest from point-blank range. It was the first time a protestor has been shot since the unrest began in June.

Data on Wednesday showed the city’s retail sales declined by most on record as months of protests took an increasing toll on the city’s economy.

Hong Kong’s Financial Secretary Paul Chan said back in September that the city’s economy likely entered a technical recession in the third quarter. Chan added that more stimulus could be added by the government if needed.

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