Gold prices closed higher for the fourth session this week as equity markets hit fresh lows, prompting safe haven buying.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose $6.40 to settle at $1,159.60 per ounce.
The yellow-metal finished in positive territory four out of five sessions this week as today’s trading session ranged from $1,148.50 to $1,167.90.
The S&P index fell below 2,000 today, the lowest point since February as equity markets collapsed worldwide. The Dow Jones industrial average was last down 1.9 percent to 16,670.10.
“Equities remain under pressure…in the last five years these sort of pressures have presented the ideal entry points for the wealth management side,” the group added.
Gold typically acts as a safe haven – or a hedge – for investors during volatile periods or uncertainty in global markets.
Inflows in gold ETF holdings accelerated – holdings in funds tracked by FastMarkets have increased to 1,526.70 tonnes.
Turning to global news, rancorous disputes in Greece over an additional bailout and further austerity measures has forced Greek Prime Minister Alexis Tsipras to resign as he called for a snap election next month.
In China, Caixin – previously HSBC – flash manufacturing PMI undershot expectations at 47.1 – below the 50 contraction level. It was the lowest reading since March 2009 and follows the previous poor reading of 48.2.
EU flash manufacturing and flash service PMI data was as expected at 52.4 and 54.3, respectively. EU consumer confidence was also in-line with forecasts at -7.
US Flash Manufacturing PMI in August was 52.9, below the consensus of 53.9.
The weakening dollar – last 1.1 percent softer $1.1359 against the euro – and falling oil prices were also market news.
Light sweet crude (WTI) oil prices on the Nymex were down $1.23 or three percent to $40.09 per barrel. Earlier, the price slipped under $40 per barrel, the lowest price since 2009.
As for the other precious metals, Comex silver for September delivery was last down 20.7 cents at $15.310 per ounce. Trade has ranged from $15.105 to $15.715.
Platinum for October delivery on the Nymex declined $8.90 to $1,026.0 per ounce, while the most-actively traded palladium contract was at $603.40 per ounce, down $19.85.
(Editing by Tom Jennemann)
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