US gold futures rose nearly more than three successive months in early North American trading on Wednesday after data showed that service sector activity in the US expanded at its slowest pace in nearly two years in January, dampening optimism about the health of the economy and darkening CASE for higher interest rates this year.
In addition to concerns about the faltering global economy it has put the stock markets under pressure.
Gold for April delivery on the Comex rose to an intraday peak of $1,135.00 a troy ounce, the most since November 2, before trading at $1,134.20, up $7.00, or 0.62%.
Spot gold was off 0.2 percent at $1,127.07 an ounce, not far below Tuesday’s peak of $1,130.30, its strongest since Nov. 3.
The Institute for Supply Management said its non-manufacturing purchasing manager index fell last month to 53.5 in December 55.3, missing forecasts for a reading of 55.1.
The disappointing data added to scepticism about the ability of the Federal Reserve to raise interest rates as much as would like next year.
Market participants are anticipating a rate hike this year, compared to four in accordance with policy guidance from the Fed. A gradual path to higher rates is seen as less of a threat for gold prices to a series rapid increases.
The final attempt to slow down India’s love for gold country – by requiring buyers of high value jewelry disclose your tax code – has pushed the unofficial trade in the second largest gold consumer in the world, instead of promoting transparency and dent demand.
Gold for delivery in February rose by Rs 124, or 0.46%, to Rs 26,906 per 10 grams amid tracking a firming trend overseas.
For Commodity Market Tips, MCX Live Tips, Gold-Silver Prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at email@example.com or Call: +91-761-4012307