Gold prices edged up to daily highs after the release of the preliminary manufacturing and service-sector sentiment reports for April and the latest jobless claims numbers.
The data was awful – more than 4.4 million Americans made their first jobless benefits claim, taking the total for the past five weeks to more than 26 million and wiping out the 22 million new jobs created in the biggest jobs boom in US history.
And the IHS Market flash purchasing managers index (PMI) for US services in April fell to a record low at 27, while the manufacturing PMI weakened to 36.9, the lowest level in 11 years.
Similar surveys in Europe, Japan, the UK, and Australia showed a similar outcome with record lows for the services sector PMIs.
The service sector saw the worst of it as the PMI reading fell to 27.0 in April, marking the quickest contraction on record.
“Services companies registered the steepest rate of decline in the survey’s history,” the report said. “The cancellation and postponement of orders led firms to reduce their workforce numbers at a rate far exceeding anything seen previously over the survey history at the start of the second quarter.”
Comex gold for June delivery rose $US7.10, or 0.4%, to settle at $US1,745.40 an ounce.
It was around $US1,751 an ounce in after-hours trading at 6 am Sydney time
Prices had traded as high as $US1,764.20 but still saw the highest finish for a most-active contract since April 14 after settling up 3% the day before.
Comex May silver edged up 2.2 cents, or 0.1%, to end at $US15.357 an ounce, a much smaller gain than the 3% jump on Wednesday.
May copper rose 2.2 cents, or 1%, to end at $US2.312 a pound.
Global iron ore prices were mixed – the price of 62% Fe fines delivered to northern China eased 58 cents to $US84.46 a tonne but the price of 65% Brazil fines jumped 2% or $US2.10 to $US102.50 a tonne as Chinese mills sought higher grade product.
