Gold gains after dismal data fans risk-off sentiment
The metal rises as eurozone data adds to concerns of a slowdown in global growth and sends investors in search for safe-haven assets
Bengaluru — Gold prices rose on Friday as disappointing economic data from the eurozone added to concerns of a slowdown in global growth and drove investors away from riskier assets. Spot gold was up about 0.3% at $1,312.37/oz by 11.56am GMT, while US gold futures gained 0.4% to $1,312. “It is about the weakness in the economy in the eurozone and outlook for interest rates which makes holding gold more attractive,” said Quantitative Commodity Research analyst Peter Fertig. Businesses across the eurozone performed much worse than expected in March as factory activity contracted at the fastest pace in nearly six years, hurt by a big drop in demand, a survey showed. “The data … was weaker than the consensus. This is weighing on interest rates in the eurozone and bond yields,” Fertig said. Germany’s benchmark 10-year government bond yield turned negative for the first time since October 2016, while European stocks wiped out early gains after the data was released. Gold prices rose to th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.