Gold climbs to six-month peak on global growth concerns, govt shutdown in US; silver, platinum rise too

Spot gold climbed 0.3 percent to $1,271.85 per ounce. The metal hit $1272.56 in early trade, its highest since 20 June.

Reuters December 26, 2018 11:48:02 IST
Gold climbs to six-month peak on global growth concerns, govt shutdown in US; silver, platinum rise too

Bengaluru: Gold prices hit a six-month high on Wednesday as concerns over global growth and a partial government shutdown in the United States fuelled risk aversion, prompting investors to seek refuge in the metal.

Spot gold climbed 0.3 percent to $1,271.85 per ounce. The metal hit $1272.56 in early trade, its highest since 20 June.

US gold futures were up 0.3 percent at $1,275.8 per ounce.

Gold climbs to sixmonth peak on global growth concerns govt shutdown in US silver platinum rise too

Representational image. Reuters.

Investors are uneasy about global economical growth and are seeking gold as a safe-haven, said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank, adding the sharp sell-off in stock markets has also lent support.

“We always see good demand for gold in the year-end. I would not be surprised if we see gold surpass $1,300 in the near future.”

Asian equities were shaky following a Christmas eve US stocks plunge. Wall Street has dropped sharply in recent weeks on concerns over weaker economic growth, compounded by political instability in the United States after a partial government shutdown.

The US Senate has been unable to break an impasse over Trump’s demand for more funds for a wall on the border with Mexico, and a senior official said the shutdown could continue until 3 January.

Tensions between the White House and the US Federal Reserve over monetary policy tightening also weighed on sentiment in the wider markets.

President Donald Trump largely laid the blame for economic headwinds on the Fed, openly criticising its chairman, Jerome Powell, whom he appointed.

“The latest move on gold should be a stark reminder to investors that gold in any form should be an essential part of any long-term investment strategy as again they yellow metal has proven its weight when markets turn turbulent,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.

Among other metals, silver rose 0.5 percent to $14.80 per ounce, while platinum rose 0.3 percent to $784.50.

Palladium was up 0.5 percent to $1,252.24 per ounce.

Updated Date:

also read

Gold price today: 10 grams of 24-carat sold at Rs 51,490; silver at Rs 58,400 per kilo
Business

Gold price today: 10 grams of 24-carat sold at Rs 51,490; silver at Rs 58,400 per kilo

According to the MCX data, gold futures increased by 0.31 per cent to Rs 51,605.00 and silver futures also witnessed a surge of 1.27 per cent and settled at Rs 58,352.00

Gold price today: 10 grams of 24-carat falls to Rs 51,370; silver at Rs 58,300 per kilo
Business

Gold price today: 10 grams of 24-carat falls to Rs 51,370; silver at Rs 58,300 per kilo

In Patna and Coimbatore, 10 grams of 22-carat gold is being traded at Rs 47,120 and Rs 47,940, respectively. In Patna, the same quantity of 24-carat purity is priced at Rs 51,400, while in Coimbatore it is valued at Rs 52,290

Gold price today: 10 grams of 24-carat sold at Rs 51,380; silver at Rs 56,500 per kilo
Business

Gold price today: 10 grams of 24-carat sold at Rs 51,380; silver at Rs 56,500 per kilo

Due to factors like making charges, state taxes, and excise duty, the price of the yellow metal alters daily. According to the Good Returns website,10 grams of 22-carat gold in Mumbai and Kolkata is being traded at Rs 47,100