Gold prices rose dramatically on Thursday, as traders rushed to the safe house investment after equity markets across the globe toppled amid installing worries about global financial growth.
Concerns over development outlook and increasing bond yields knocked the wind out of stocks on Wall Street on Wednesday and the resultant sell-off in Asian markets on Thursday set up a weak start for European stocks. Today, the U.S. market is seeing some wild swings with investors remaining cautious of building up positions due to development issues.
Gold futures for December wound up $34.20, or 2.9%, at $1,227.60 an ounce, the greatest settlement because August 1. On Wednesday, gold futures ended up $1.90, or 0.2%, at $1,193.40 an ounce.
Silver futures for December wound up $0.280, at $14.606 an ounce.
Copper futures for December settled at $2.8030 per pound, gaining $0.0225 for the session.
The recent report from the International Monetary Fund that reduced its growth projection for the international economy, higher U.S. interest rates and issues about slowing Chinese economy in the middle of the ongoing U.S.-China trade war, have actually taken a heavy toll of stocks in the U.S. stock exchange and practically all the markets across Asia and Europe.
In U.S. financial news, a report launched by the Labor Department today revealed a modest boost in first-time claims for U.S. welfare in the week ended October 6th. The report said initial jobless claims increased to 214,000, an increase of 7,000 from the previous week’s unrevised level of 207,000. Economic experts had anticipated unemployed claims to edge down to 206,000.
Another report from the Labor Department revealed consumer rates in the U.S. to have edged up slightly in the month of September. The information revealed consumer cost index inched up by 0.1% last month, after increasing by 0.2% in August. Financial experts had expected prices to increase by another 0.2%.
The report stated the annual rate of consumer rate growth slowed to 2.3% in September from 2.7% in August, while the annual rate of core customer cost development was unchanged at 2.2%.
U.S.-China trade tensions are intensifying following U.S. President Donald Trump repeating a hazard to enforce tariffs on $267 billion worth of extra Chinese imports if Beijing retaliates for the other measures and current levies.
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