Gold Price Loses Altitude, Hits Fresh 3.5-Mo. Low, Following Strong US Data

New York (Oct 5)  Gold prices have erased moderate early gains to trade lower and at a new 3.5-month low in late-morning dealings Wednesday. The September U.S.

Non-manufacturing purchasing managers index (PMI) rose to its highest level in a year, with a reading of 57.1 versus 51.4 in August. A number of 53.0 was expected by the marketplace. This news falls into the camp of the U.S.

Monetary policy hawks, who want a U.S. interest rate increase sooner rather than later. Tighter monetary policies from the world's major central banks, and even talk of such, has been bearish for the precious metals markets. The marketplace is awaiting what is arguably the most important U.S. data point of the month: Friday's Labor Department employment report for September.

Spot gold was down $8 to $1,266 while spot silver slid nearly m2% to $17.65. However, palladium plummeted $21 (3%) to $681...and platimum plunged $22 to $972.

Source: KitcoNews