By Adrian Ash
Gold bars in London wholesale trade rose near 3-week highs against a weakening Dollar and touched 1-month highs against the Chinese Yuan on Wednesday, as poor US data saw traders cut their bets of a US Fed rate rise at the September meeting in 2 weeks' time.
Service-sector activity in the US suddenly slowed last month to its weakest level in more than 6 years, the private-sector ISM report said Tuesday, with the New Orders Index registering a plunge of 8.9 percentage points.
Regaining an overnight break above $1350 per ounce, prices for wholesale gold bars showed their fastest week-over-week rise since the Dollar price peak of early July at 3.2% this morning, as Asian shares closed lower but European equities rose.
Investor demand for gold-tracking ETF the SPDR Gold Trust (NYSEArca:GLD) yesterday returned from the US Labor Day holiday to need an extra 14.2 tonnes, the heaviest 1-day inflow since immediately after the Independence Day holiday on 4th July.
That took the GLD's total holdings of London Good Delivery gold bars – vaulted at HSBC bank in London and needed to back the trust's stockmarket shares in issue – to a 1-week high of 953 tonnes.