Gold hits multimonth high as falling equities cement growth fears
Fears about a slowing global economy have sent safe-haven investors to the precious metal
Bengaluru — Gold touched its highest level in more than six months on Wednesday as sagging equities compounded concerns over weakening global markets, prompting safe-haven flows into the precious metal. Spot gold was up 0.4% at $1,287.31 an ounce by 11.13 GMT, having earlier touched its highest since June 15 at $1,288.66. US gold futures rose 0.6% to $1,289.40. “We are seeing a very risk-averse market right now,” said Craig Erlam, senior market analyst at Oanda. Global shares began 2019 on a downbeat note while oil prices and bond yields slid and the Japanese yen strengthened as data from far and wide exacerbated concern over the potential for a global economic slowdown. Economic and geopolitical concerns mean it is only a matter of time before gold shoots up, said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai. Markets are also awaiting views from Federal Reserve chair Jerome Powell on the US economic outlook and hints about interest rates in 2019 when he partici...
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