Gold prices climb to highest level in over a week

Gold maintained its uptrend at settlement today, Aug. 23, as investors evaluated economic data that showed a slowdown in industrial and service activities in the US, UK and the European Union (EU).

Bullion for December delivery leapt 1.15%, or $22.10, to finish at $1,948.10 an ounce, hitting its highest level since August 10.

In an interview with CNBC, Daniel Ghali, commodity strategist at TD Securities, said market forecasts suggest the Federal Reserve will keep tightening monetary policy, underlining that it is too early for Chair Jerome Powell to decide on easing the current policy cycle during the coming period.

According to the CME FedWatch Tool, markets are pricing in an almost 88.5% chance that the US central bank will fix interest rates unchanged during the rate-setting committee’s meeting next September.

In its July survey, S&P Global said its preliminary US Composite Purchasing Managers' Index (PMI) tumbled to a six-month low of 50.4 points in August, after reaching 52.0 points in July.

The Services PMI recorded 51.0 points during the current month, down from 52.3 points in July. Meanwhile, the Manufacturing PMI resumed declining in August to record the lowest level in two months of 47.0 points, after increasing to 49.0 points in July.