2nd September, 2016

 Gold got to a two-month low of $1305 on Thursday, but turned to finish about $6/ounce higher at just over $1314. The reversal was attributable to the dollar falling on unexpectedly weak US manufacturing data that came out, raising fresh doubts about a potential September move by the Fed. In this regard, the August ISM manufacturing index fell 3.2 points to 49.4, the first dip into contraction territory since February. Production subcomponents also went negative, while factory employment shrank further, although we have yet to see these higher jobless readings manifest themselves in higher weekly unemployment levels. The impact on the dollar was immediate, with the Japanese currency recovering by a full yen at the end of the day and closing just above 103. The Euro also rallied to 112, up almost a full point.