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.