Forexpros – Gold futures jumped to an all-time in U.S. trade Friday before paring gains, as dealers shied away from volatile equity markets in light of heightened fears of a global economic slowdown.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,849.65 a troy ounce during U.S. afternoon trade, up 1.62% from the day’s low of 1,822.35..
Earlier in the day, gold jumped to a new record high of USD1,878.35, setting a new high for the second straight day and on pace for its biggest one-week gain in over two years.
Slumping shares on U.S., European and Asian markets fed into strength for gold as a slew of weak economic data and continuing concern over European sovereign debt boded well for safe-haven investments.
The U.S. Labor Department on Thursday reported that initial jobless claims rose by 9,000 to 408,000 for the week ending August 12. Jobless claims were forecast to reach 400,000 for the month.
And the National Association of Realtors said existing home sales fell by 3.5% in July, hitting an eight-month low. Economist’s forecasts predicted a gain of 2.7% for the month.
Earlier in the week, the European Union’s Eurostat announced that gross domestic product in the region rose just 0.2% in the second quarter, falling short of a 0.3% market forecast.
Growth in Europe’s largest economy also slowed, as Germany’s GDP rose 0.1% in the quarter ending in June. The second quarter figure was in marked contrast to a 1.3% expansion rate in the first quarter, and well below economist’s forecasts of a 0.5% rise.
A meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel failed to dispel ongoing concerns involving debt-threatened euro-zone nations, as the two failed to agree on specifics for embellishing a bailout fund for the region.
Elsewhere on the Comex, silver for September delivery leapt 4.36% to trade at USD42.49 a troy ounce, while copper for September delivery advanced 0.61% to trade at USD3.965 a pound.
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