Gold stays strong as equities slide
Dollar weakness, and losses in global stock markets driven by US-China trade-war fears, kept bullion near its five-week highs
Bengaluru — Gold held near a five-month peak on Monday as a slide in global shares pushed investors to seek shelter in bullion, while waning expectations of US interest-rate hikes next year also underpinned the metal’s appeal. Spot gold inched down 0.1% to $1,246.82 an ounce, as of 10.44am GMT, after hitting its highest since July 11 at $1,250.55. US gold futures were steady at $1,252.4 an ounce. Losses in global stock markets snowballed on Monday on worries over slowing growth and fears that a rise in US-China tensions could torpedo chances of a trade deal. “It’s really encouraging that gold has risen to $1,250 level at the same time when equities were soft and this really underpins gold’s role as a safe haven,” said Julius Baer analyst Carsten Menke, adding that bullion was also supported by the weakness in the dollar. Gold last week posted its best weekly gain since March and has recovered about 8% from 19-month lows hit in mid-August. “The $1,250 pivot remains in play and should...
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