Spot gold and silver ended up 0.5% and 1.4% respectively on Wednesday, with the gains attributed to a September slow down in U.S. manufacturing growth, a flat U.S. dollar and a stock sell-off that was led by shares in airlines and travel booking companies, based on fears about ebola.
“One catalyst for gold could be a flight to quality bid if equities continue to deteriorate,” said a trader quoted by MarketWatch, who added that “From a timing perspective, the best opportunity would likely come when the dollar finally pauses to consolidate its current gains. Even the temporary dissipation of such a headwind would likely lead to a sharp rally.”
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