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Gold steady

Gold held steady yesterday after posting its best daily gain in two weeks in the previous session, with investors drawn to bullion as global equities slipped on economic growth fears and the U.S.-China trade dispute.

Spot gold was little changed at $1,285.10 an ounce by 1253 GMT, while U.S. gold futures were up 0.1 percent at $1,284.70.

“Any weakness in stocks is likely to attract a bid because the market is looking towards gold as a safe haven at this stage,” said Saxo Bank analyst Ole Hansen.

“We have seen demand for exchange-traded funds (ETFs) continue to pick up despite the strong recovery in stocks this month. This indicates the market does not believe we are out of the woods just yet and that growth worries remain.”

Reflecting investor appetite for gold, holdings of SPDR Gold , the largest gold-based ETF, was at its highest since June 2018.

Renewed fears about a slowdown, exacerbated by economic data from the United States and Japan and the International Monetary Fund’s latest downgrade to global growth projections, sapped appetite for risky assets, dragging on shares and bond yields. 

Source : The Herald

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