PRECIOUS-Gold hits 3-month top on shaky global economy

Published 2016-02-01, 07:55 p/m
© Reuters.  PRECIOUS-Gold hits 3-month top on shaky global economy
XAU/USD
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GC
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CL
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GLD
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MANILA, Feb 2 (Reuters) - Gold edged up to a three-month
high early on Tuesday as weak global manufacturing surveys
soured appetite for risky assets and pushed investors toward
safe havens.

FUNDAMENTALS
* Spot gold XAU= was little changed at $1,128.80 an ounce
by 0028 GMT, just off an initial high of $1,130.11, its
strongest since Nov. 3.
* U.S. gold for April delivery GCcv1 gained 0.2 percent to
$1,129.80 an ounce.
* Global manufacturing expansion accelerated slightly but
remained weak at the start of 2016 as faster growth in developed
markets failed to offset a contraction in emerging economies. In
China, a gauge of factory activity fell to its lowest since
mid-2012.
* Gold, typically the asset of choice in times of
uncertainty, has benefitted from the volatility in other
financial markets. It posted its best monthly jump in a year in
January, and has gained more than 6 percent so far in 2015.
* The U.S. economy could suffer, with inflation remaining
too low, if recent volatility in financial markets persists and
signals a slowdown in the global economy, the Federal Reserve
Vice Chairman Stanley Fischer said.
* The Fed's statement last week that it will closely monitor
the global economy and financial markets lifted gold to near
$1,130, as it underlined expectations that U.S. policymakers may
take it slowly in raising interest rates this year.
* Reflecting growing confidence in gold, holdings of SPDR
Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, rose to 21.9 million ounces on Monday, the
most since Nov. 3. GOL/ETF
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* Asian shares wobbled as crude oil prices slid on rekindled
oversupply fears and after downbeat manufacturing data raised
concerns about global momentum. MKTS/GLOB
* The yen remained in the doldrums while the Australian
dollar held firm as investors bet the Reserve Bank of Australia
will resist the recent trend for surprise policy easings. USD/

DATA AHEAD (GMT)
0855 Germany Unemployment rate Jan
1000 Euro zone Producer prices Dec
1000 Euro zone Unemployment rate Jan
1445 U.S. ISM-New York index Jan


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