Business & Trade

Gold steadies as stocks surge; growth risks, bets on rate cuts lend support

Gold steadies as stocks surge; growth risks, bets on rate cuts lend support

Gold prices hit a one-week high on Wednesday, boosted by the optimism of safe havens, while hopes for a quicker resolution.

Spot gold advanced 0.5{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} reaching $ 1,425.64 an ounce, at 0711 GMT. At the beginning of the session, gold reached $ 1,435.99, a peak since June 25.

Futures on gold in the United States rose 1.5{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} to $ 1,429.30 an ounce.
The appointment of the leaders of the European Union of the head of the IMF, Christine Lagarde, as a replacement for Mario Draghi at the seat of authority of the European Central Bank, strengthen expectations of easing monetary policy in the bloc.

The traders accepted the decision kicking the yields of the German Bund to 10 years at historical lows.

US President Donald Trump announced on Tuesday the names of two candidates to fill the vacancies on the Federal Reserve Board and stated that he wants lower rates.

SPDR Gold Trust, the world’s largest gold backed exchange trading fund, said its holdings fell 0.2{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} to 798.44 tonnes on Tuesday. However, the shares have gained more than 5{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} in the last month, indicating the interest of bullion investors. Silver fell 0.2{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} to $ 15.28 per ounce.

Platinum rose 0.6{dd299c883823a46beb0705d70a03c819bede140f906792bc593d52b8d4c5e8ee} to $ 832.60 per ounce which reached a three-month high of $ 1,568 in the previous session.

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Charles Barker
Charles Barker is the team’s trusted source for all news relating to equity markets and is treated as a business expert. They cover stories which matter in the international trading and business arena, including large transactions, or moves by nations in any direction, affecting the business markets.

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