Gold Prices Stayed Glue Near $1,500 as Investors Seek Hedge
Gold prices seem stuck near $1,500.
Bullion and gold futures remained on their bullish descend on Monday. Also, Wall street’s major indexes increased on another wave of risk appetite across markets.
Spot gold, which tracks live trades in bullion, settled down at $5.17, or 0.3%, at $1,509.09 per ounce. Even at the lows of the day, spot gold remained above $1,500, ringing in a bottom of $1,504.53.
Meanwhile, gold futures for December delivery on COMEX stayed just 30 cents lower at $1,511.10.
A technical analyst said that it had been a risk-on at the start of the week. Also, global stocks and crude oil rallying and the safe-haven ten is falling. But it is supported by positive signals around U.S.-China trade negotiations.
Contrarily, gold withstands the trend. The analyst noted that some traders needed a hedge to recent weakness in data and not brilliant corporate gains.
He added that it consistently seen how much further trade-related optimism will support Wall Street and risk assets.
According to TD Securities, money managers and gold can still give an effective hedge against further delay in growth.
The Canadian bank-backed brokerage noted a slowdown could open the door to further rate cuts. Also, it allows capital to embrace risk in the near term.
Global growth concerns and the Fed may set to stay on hold in December 2019 and January 2020. This suggests that a positioning-driven selloff could be shallower than would otherwise unexpected.
Gold Prices Remained Firm as Risk Assets Rally on Trade Hopes
Gold prices remained firm in the face of an extensive risk-on rally in global markets. Also, traders reduced to abandon their hedge against disruption in U.S.-China talks and lower interest rates.
Bond yields increased, and stocks around the world rallied after U.S. Commerce Secretary hinted at the cutting Chinese telecom group Huawei. It is a notable hostage of the trade argument, some slack by unbinding a ban on U.S. firms selling to it. Also, risk assets liked Ross’ comments on fresh import tariffs on European and Asian autos.
The U.S. Treasury bond yields increased as traders moved out of bonds and pushed Dow Jones index to a new peak. Contrarily, there was no significant fall in gold prices.
Gold futures for delivery on COMEX settled less than 0.1% at $1,510.95 a troy ounce. Spot gold settled down 0.4% at $1,507.80.
Theoretical interest in gold hit its highest peak in six weeks last week, according to data released on Friday. Aftermarket participants looked through the Federal Reserve’s recent interest rate cut. Also, the Fed’s guidance appeared to rule out any further help in the near term.
An analyst at JPMorgan said that the price action advised that many were still prepared to bet on another cut in rates in 2020. However, they warned a Fed on hold would represent a significant downside risk to a bullish outlook on gold prices.
JPMorgan anticipates gold to be trading around $1,800 by the fourth quarter of next year.
Furthermore, silver futures plunged 0.2% to $18.02 an ounce. Also, platinum futures retreated 1.0 %, an ounce posted over the weekend to $944.45.
Copper prices rose up 0.3% to $2.66 a pound.
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