Gold Jumps on More Safe-Haven Demand

Gold prices jump higher in early U.S. trading Monday, boosted by some more safe-haven buying interest amid a still-uncertain market place. Spot gold was last up $17 at $1,262, while spot silver was up 36 cents to $12.52.

There was more downbeat economic data coming out of China during the weekend. China’s manufacturing purchasing managers index (PMI) fell to a reading of 50.5 in January from 51.0 in December. The reading was a six-month low. Also, the Chinese non-manufacturing PMI fell to 53.4 in January. Meantime, the European Union’s manufacturing PMI came in at 54.0 in January versus 52.7 in December—the strongest rate in nearly three years. Any PMI reading above 50.0 suggests expansion.

The Chinese Lunar New Year holiday has China on holiday early this week. That is keeping Asian markets somewhat subdued.

U.S. economic data due for release Monday includes the U.S. manufacturing PMI, construction spending, the ISM manufacturing report on business, the global manufacturing PMI, and domestic auto sales.