Bengaluru — Gold prices edged higher on Tuesday as Asian stocks faltered, weighed down by political tension between Saudi Arabia and western powers, uncertainties around Brexit and Italy’s budgetary woes. Spot gold was up 0.2% at $1,223.66/oz at 4.19am GMT. US gold futures rose 0.2% to $1,226.5/oz. “Geopolitical tensions are escalating and that has brought some safe-haven buying back into the gold market.… Short positions also appear to be unwinding as a result,” ANZ analyst Daniel Hynes said. Asian shares fell as earnings season nerves in the US dented Wall Street and the mix of political and economic concerns dampened sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.7%. Gold is used as an alternative investment during times of political and financial uncertainty. The fast pace of short-covering in the past fortnight has helped lift gold prices, with volatility in risk assets, and continued fears over a trade war strengthening demand, according to Jor...
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