Gold Surges To A Brand New Record On The Back Of Weak ISM Services Number

Gold has surged to a new all time high today, breaking $1450. It’s now back down slightly, to around $1448.

Gold’s surge kicked off today on the back of this morning’s weak ISM Services number, which indicated a slowdown in growth in the sector. In particular, business activity in the ISM fell from a 66.9 to a 59.7.

It’s likely the market is reacting to this weakening in the U.S. economy by assuming there may be another round of quantitative easing to come, hence the spike in gold.

Don’t miss: Citi on the four reasons the U.S. can’t endure a rate hike >

Gold 45

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at