Gold rises as sliding stocks boost safe-haven demand
By Sethuraman N R BENGALURU (Reuters) - Gold prices rose on Thursday, helped by a weaker dollar and as a relief recovery in stock markets fizzled out, driving investors toward the safe-haven metal. Spot gold was 0.4 percent higher at $1,272 per ounce at 10:00 a.m.
By Sethuraman N R
BENGALURU (Reuters) - Gold prices rose on Thursday, helped by a weaker dollar and as a relief recovery in stock markets fizzled out, driving investors toward the safe-haven metal.
Spot gold was 0.4 percent higher at $1,272 per ounce at 10:00 a.m. EST (1500 GMT), after hitting at $1,279.06 in the previous session, its highest since June 19. U.S. gold futures rose 0.1 percent to $1,274.50 per ounce.
"The weaker dollar index is supporting the buying interest in gold and the U.S. stock indexes have pulled back significantly, which has also helped," Jim Wyckoff, senior analyst at Kitco Metals.
"Also, the technical pasture of the gold market has become significantly bullish on a near-term basis, which is inviting some chart-based buying too."
A global equity rally fueled by a dramatic surge on Wall Street ran out of steam on Thursday, after a fall in Chinese industrial profits again showed the pressures on the global economy. U.S. stocks fell sharply at open on Thursday.
"The recovery rally in stocks has not lasted long and the bearish sentiment is dominating again, which is supportive for gold," a Germany-based analyst said.
The dollar index, a gauge of the greenback's value against six major peers, fell 0.5 percent on Thursday, a sign that gold is cheaper for holders of other currencies. A partial U.S. government shutdown was widely expected to continue after Congress reconvenes on Jan. 3, with lawmakers split over President Donald Trump's demand for $5 billion in taxpayer funding for a Mexican border wall.
Investor confidence in bullion was reflected in a surge in the holdings of SPDR Gold, the largest exchange traded fund. SPDR holdings rose 2.1 percent on Wednesday, the best one-day percentage gain since July 2016.
"There has been an extensive surge in the gold exchange traded fund holdings and there is absolutely no shortage of momentum there. Investors are just preparing themselves by buying gold as there are several uncertainties heading into 2019," said Naeem Aslam, chief market analyst at Think Markets UK.
SPDR holdings, at their highest since August, have risen about 8 percent since touching more than 2-1/2-year lows in October.
Among other metals, silver was up 1 percent at $15.18 per ounce, after hitting its highest level since mid-August at $15.25. Platinum fell 1 percent to $789.90 per ounce, while palladium was steady at $1,254.99.
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Steve Orlofsky)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son