Gold up as stock markets fall on poor economic data
Adam Pike, News Editor
16 Oct 2014, 10:21 a.m.
The gold price hit $1,250 per ounce yesterday as traders turned to gold after poor economic data out of the U.S caused equity markets to tumble.
Disappointing retail sales data caught traders by surprise which resulted in an equity sell off which spread immediately to Europe and then to Asian markets. The FTSE 100 fell 2.8% to a 15 month low and the Dow retreated over 1%. In Asia the Hong Kong, Chinese, and Japanese stock markets also experienced losses. Low inflation data from China also weighed heavy on the markets.
Historically gold performs positively in times of economic and political turmoil.
Gold is currently trading at £773.98 per ounce, silver £10.90 per ounce, platinum £784.15 per ounce and palladium £474.58 per ounce.