Gold and silver futures prices ended the U.S. day session sharply higher and hit three-week highs Tuesday. Overnight gains in both metals were solidly extended after the morning release of a very downbeat U.S. ISM non-manufacturing report for August. Today’s big gains followed Friday’s price advances that produced technically bullish weekly high closes in gold and silver. December Comex gold was last up $28.80 an ounce at $1,355.60. December silver futures were up $0.772 at $20.19 an ounce.
The U.S. non-manufacturing purchasing managers index reading for August was 51.4 versus July's 55.5. A reading of 55.5 was expected for August. That was the lowest reading in six years. Other indicators in the ISM report also missed to the downside of market expectations. Today's ISM data also put very strong downside price pressure on the U.S. dollar index, which was friendly to the precious metals markets bulls.
Market watchers are now awaiting Thursday’s meeting of the European Central Bank. The ECB will issue fresh economic forecasts and assessments at this meeting. The consensus for this meeting is that the ECB will make no significant moves on EU monetary policy.
Reference: KITCO
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