WASHINGTON (dpa-AFX) - Gold prices moved higher on Thursday, with investors seeking the safe haven of the yellow metal, after equities tumbled on disappointing economic data from China and profit warning from Apple.
Worries on the Brexit front, trade war concerns and political wrangling in Washington over federal government funding of a border wall too contributed to gold's rise.
The dollar's weakness against most major currencies too prompted investors to rush for gold. The Japanese yen very nearly recorded its biggest single-day gain in 20 months against the U.S. dollar.
The dollar index was down by about 0.6% at 95.85.
Gold futures for February ended up $10.70, or 0.8%, at $1,294.80 an ounce, the highest settlement since mid June 2018.
On Wednesday, gold futures ended at $1,284.10 an ounce, gaining $2.80, or 0.2%, for the session.
Silver futures for March settled at $15.797 an ounce, up $0.148 from previous close.
Copper futures for March ended at $2.568 per pound, down $0.055 from Thursday's close.
The world's largest technology company Apple cut its first quarter revenue guidance to $84 billion from the $89 to $93 billion it had previously projected, citing weakening economy in China and lower than expected iPhone revenue.
According to survey data from IHS Markit, China's manufacturing activity fell in December, due to a decline in new orders, for the first time since May 2017. The headline seasonally adjusted Caixin Factory Purchasing Managers' Index, or PMI, fell to 49.7 from 50.2 in November. Prior to December, manufacturing activity had stagnated in the previous two months.
In economic news from the U.S., a report from the Institute for Supply Management showed a much bigger than expected slowdown in the pace of growth in U.S. manufacturing activity in the month of December.
The ISM said its purchasing managers index tumbled to 54.1 in December after rising to 59.3 in November, slumping its lowest level since hitting 53.4 in November of 2016. Economists had expected the index to show a more modest drop to a reading of 57.9.
Meanwhile, a report from payroll processor ADP showed much stronger than expected U.S. private sector job growth in December.
ADP said private sector employment surged up by 271,000 jobs in December after climbing by a downwardly revised 157,000 jobs in November.
On Wall Street, stocks were plunging sharply on global growth worries. The Dow was down 2.3%, the Nasdaq was lower by 2.7% and the S&P 500 was down 1.9%. Major markets in Europe and Asia ended sharply lower on Thursday.
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