Gold slips to over three-month low as equities rise on 'risk-on' sentiment

By K. Sathya Narayanan (Reuters) - Gold fell on Monday to its lowest price in more than three months, dragged below technical support as upbeat risk sentiment kept U.S.

Reuters November 12, 2019 00:07:56 IST
Gold slips to over three-month low as equities rise on 'risk-on' sentiment

Gold slips to over threemonth low as equities rise on riskon sentiment

By K. Sathya Narayanan

(Reuters) - Gold fell on Monday to its lowest price in more than three months, dragged below technical support as upbeat risk sentiment kept U.S. stock indexes close to record levels, while investors awaited news on the U.S.-China trade.

Spot gold fell 0.2% to $1,455.47 per ounce as of 11:27 a.m. EST, having touched its lowest since Aug. 5 earlier. U.S. gold futures fell 0.4% to $1,456.50.

"Overall, the outlook for (wider markets) seems more positive," said Tai Wong, head of base and precious metals derivatives trading at BMO, adding the immediate trigger for gold's decline was technical, since it failed to hold above $1,460.

"Before the trade-driven August rally, we were in a $1,380-$1,440 range so we could trade down somewhere into that level."

U.S. stocks bounced off lows on Monday and hovered near record levels hit the previous week. But investors remained cautious about U.S.-China trade negotiations after U.S. President Donald Trump said Beijing wanted a deal more than he did.

Trump also said that there had been incorrect reporting about Washington's willingness to lift tariffs.

Wall Street's bounce "took everything out of gold that it had going today," said Bob Haberkorn, senior market strategist at RJO Futures.

Gold slumped 3.6% last week for its biggest weekly decline in three years on upbeat equities and optimism surrounding the U.S.-China trade deal.

"Gold is waiting for the next big fundamental development," Kitco Metals senior analyst Jim Wyckoff said. He said a stock market decline could boost bullion, as could a worsening of unrest in Hong Kong, where protesters threw petrol bombs at police after a weekend of clashes across the Chinese-ruled territory.

"If that situation (in Hong Kong) deteriorates further, that could give gold a safe-haven lift," Kitco's Wyckoff added.

Among other precious metals, palladium dropped 2.4% to $1,700.45 per ounce, having touched lowest since Oct. 14 earlier.

"It's more of a short term, though possibly sharp, correction like we had in the beginning of August before it embarked on a $400-30% rally. The market has been and remains quite long so, the weakest hands will always liquidate on price retreats," BMO's Wong said.

Platinum slipped 0.9%, to $878.78 per ounce, after touching its lowest since Oct. 4, while silver rose 0.2% to $16.83 after slipping to its lowest in mid-August earlier in the day.

(Reporting by K. Sathya Narayanan and Arpan Varghese in Bengaluru; Editing by David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

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.

also read

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash
Business

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash

(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.

Bayer settles Roundup cancer lawsuits for up to $10.9 billion
Business

Bayer settles Roundup cancer lawsuits for up to $10.9 billion

FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.

Sudan to establish trade financing fund in face of forex shortage
Business

Sudan to establish trade financing fund in face of forex shortage

KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate