Trade-war-weary investors turn to gold
Metal rises as Asian shares resumed their fall and investors grapple with the effect of the China-US trade war and higher US interest rates
Bengaluru — Gold prices rose on Monday as Asian shares resumed their fall and investors grappled with the effect of the ongoing China-US trade war and higher US interest rates. Spot gold was up 0.4% at $1,222.0/oz at 4.17am GMT, and not far off last week’s two-month high of $1,226.70. US gold futures were up 0.2% at $1,225.60/oz. “Gold is closely following the stock market. When stock markets are not stable, there is some safe-haven buying,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. “There are many uncertainties ahead for equities, including the ongoing trade war, upcoming mid-term elections in the US, along with an expected interest rate hike in December.… We will have to see how gold reacts to these.” Asian shares slipped on Monday, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 1%. “Gold is more appealing after the stock market crash. It has regained some of its safe-haven lure,” said Brian Lan, MD at Singapore dealer GoldSilve...
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