REUTERS: Gold rose yesterday, holding above the psychological US $ 1,500 level as investors’ demand for safe-haven bullion increased on concerns over the impact of the trade war between Washington and Beijing on global economic growth.
Spot gold was up 0.5 percent at US $ 1,504.55 per ounce at 1202 GMT, holding close to last week’s six-year high of US $ 1,510. U.S. gold futures were up 0.6 percent at US $ 1,517.40 an ounce.
“(There are) fears of slowdown in the global economy, and the trade talks (between the United States and China) are not going the best way,” ActivTrades analyst Carlo Alberto De Casa said. “There is still room for gold to go up.”
U.S. President Donald Trump said on Friday he was not ready to make a deal with China and even called the September round of trade talks into question.
The yen and bonds - also often seen as offering protection from risk - rose, while stocks struggled, hurt by fears a prolonged trade war and Britain’s looming exit from the European Union could tip top economies into recession.
With no sign of trade tensions between the U.S. and China abating, MKS PAMP said in a note that gold could continue to build momentum, with global growth concerns and central bank easing also helping the rally.
Analysts said negative debt yields around the globe were further supporting bullion. Non-interest bearing gold tends to benefit when yields on other assets are low.
Market focus is now on the Federal Reserve annual symposium at Jackson Hole later in the week, with investors seeking greater clarity on the future path of interest rates. Traders see a 74 percent chance of a 25 basis-point rate cut by the U.S. central bank this September. Spot gold may gain further to US $ 1,524, as it has cleared resistance at US $ 1,497 per ounce, Reuters technical analyst Wang Tao said.
Hedge funds and money managers raised their bullish stance in COMEX gold in the week to Aug. 6, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
However, with bullion rising as much as 4 percent last week and up about 17 percent this year, some argued further gains may be tough to find. “To achieve higher prices we need more negative surprises in the economic, financial and geopolitical side. If we don’t see further escalation (in trade tensions), we are likely to see gold prices treading water or coming under more pressure,” Commerzbank analyst Eugen Weinberg said.
Elsewhere, silver was up 0.1 percent at US $ 16.96 per ounce. Platinum was down 0.1 percent at US $ 858.19, while palladium gained 0.5 percent to US $ 1,428.94 an ounce.
Add commentComments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
In order to critically discuss a movement, we must first understand its etymo
Many battles were fought during the long war between the Sri Lankan armed for
When can one say they’ve had enough of being in a state of ‘wokeness’ a
Members of a dozen Sri Lankan Tamil families gathered in the evening at the r
22 Mar 2023
20 Mar 2023 - 3 - 757
18 Mar 2023 - 2 - 937
18 Mar 2023 - 0 - 630
18 Mar 2023 - 0 - 805
Name - Reply Comment