The warning bells of recession are once again ringing out loud and clear, adding further urgency to buy gold now.
This week’s manufacturing data has confirmed a contraction has taken place, with the PMI falling from its October reading of 50.2% to an unexpected 49%.
Acknowledging that the data was below what economists had wanted to see, the ISM Manufacturing Business Survey Committee Timothy Fiore said that the data is a sign of things to come. “With Business Survey Committee panellists reporting softening new order rates over the previous six months, the November composite index reading reflects companies’ preparing for future lower output,” he explained.
In the wake of the data being published, gold gained 3.26%, suggesting recession fears are weighing heavy. Capital Economics’ North America Economist, Paul Ashworth said the data was a sign of the times, noting worse is to come over the next few months. “Given the global economic weakness – particularly in China and Europe – we would expect to see the ISM manufacturing index decline further in coming months – leaving it consistent with a recession,” he warned.
If you needed a clear sign to buy gold now, this is it. Don’t delay.
