Gold traded above US$ 1,942 overnight and continues to trade just below that level today as markets fret over the health of the US economy.
Disappointing PMI data appeared to lead to market perceptions that the Fed night is not going to be hiking as hard as previously thought. Treasury yields fell across the curve with the largest declines seen at the back end.
The lower return on offer from interest-rate products seems to have favoured the non-yield-bearing precious metal.
