Metal tops $1,800 an ounce as slowdown concerns grip markets
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures surpassed $1,800 an ounce Thursday as fears of a global economic slowdown gripped markets and the day’s full slate of macroeconomic reports gave such fears even more weight.
Gold for December delivery GC1Z +1.56% added $29.60, or 1.7%, to trade at $1,823.50 on the Comex division of the New York Mercantile Exchange.
It earlier traded as high as $1,829.70 an ounce, an intraday record for the metal.
“There’s so much talk about a double dip” for the U.S. economy, said James Cordier, a portfolio manager with Optionsellers.com in Florida.
Investors who had tried to make it a go for stocks are now “piling into gold“ as equities have swoon, he said.
“It seems a though (gold) is the last safety net available,” Cordier said.
Gold settled at a record $1,793.80 an ounce Wednesday. So far this month, gold has gained more than 10%, with yearly gains surpassing 26%. Read more about Wednesday's action in gold.
U.S. stocks slumped Thursday, and oil futures were down nearly 5%.
Earlier, investors grappled with news initial jobless claims in the week ending Aug. 13 rose 9,000 to 408,000, according to the Labor Department. Read more about jobless claims.
The increase was larger than analysts had expected, with the consensus forecast around a rise to 400,000.
The other macroeconomic data points of the day only painted an uglier picture of the U.S. economy, giving more fodder for the talks of a recession.
The Philadelphia Federal Reserve Bank’s business outlook survey fell to negative 30.7 in August from 3.2 in July -- the lowest reading since March 2009. Read more about the Philly Fed’s factory index.
The cost of living in the U.S. climbed in July, mostly thanks to energy prices, as the consumer price index rose 0.5%, its biggest gain since March. See more about retail prices rising.
Gold is often thought as the ultimate storer of wealth, and thrives in times when inflation is more of a concern.
Sales of existing homes fell 3.5% in July to an eight-month low. Read more about the day’s housing data.
Other metals more closely linked with industrial usage and growth tracked oil and stocks lower. September copper HG1U -1.72% declined 7 cents, or 1.7%, to $3.96 a pound.
Silver for the same month’s delivery SI1U +0.62% , however, followed gold higher, advancing 13 cents, or 0.3%, to $40.50 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
