Lower equity markets boost price of gold
Despite broad risk-off sentiment, bids for gold have been limited by the dollar index climbing to a one-month high
Bengaluru — Gold prices firmed on Thursday, supported by a slide in equity markets amid renewed trade tension, but a strong dollar kept a lid on gains as investors flocked to the safe-haven US currency. Spot gold was up 0.3% at $1,276.83 per ounce by 10.39am GMT, after falling to its lowest since May 3 on Tuesday at $1,268.97. US gold futures were 0.2% higher at $1,276.20 an ounce. "We have the higher dollar and lower Chinese yuan pressuring gold. At the same time, yields are a bit lower and equity markets are down," said ABN AMRO analyst Georgette Boele. "Gold is not really a safe-haven asset at the moment. There are more offseting factors right now. Apparently there is no real strong directional move in gold at these levels," she added. World shares were in the red as concerns grew that the China-US trade conflict was fast turning into a technology cold war between the world's two largest economies. The White House is considering Huawei-like sanctions on Chinese video-surveillance...
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.