Gold Weakens in Early Sessions, Fall Equity Probably Will Give Support

Gold prices moved lower on Wednesday after rising for four days, triggered by uncertainty over the fate of the Chinese economy has hurt the global equity markets.

Spot gold prices fell by 0.3% to a range of $ 1,137.51 per onz at 09:50 GMT, after touching its highest level in a week at $ 1,147.16 on Tuesday.

Losses sustained in Asian equity markets may divert some investment funds to gold after US factory activity data wounded to the lowest level in two years in August.

Chinese manufacturing activity also fell to its lowest level in three years last month.

Eric Rossengren, Boston Fed president said that the Federal Reserve will probably Raise interest rates gradually, regardless of whether they will decide to take steps first few months faster or slower.

All eyes are currently focused on data on non-farm payrolls on Friday that economists say that job growth is strong in August can help support the expectations for the Fed to be Raise interest rates for the first time in almost the past decade at the next meeting on 16th -17 September.