Gold Rebounds Amid Stock Euphoria
Gold prices continued to recover from their recent decline, indicating strong demand for the precious metal despite improving risk sentiment in global financial markets. Bullion was previously trading at around US$4,095 per troy ounce, after rising 0.3% in the previous session.
At the same time, shares of global technology giants rallied on expectations of Nvidia's bright prospects, which are expected to fuel another artificial intelligence (AI)-themed rally on Wall Street. Interestingly, gold's movements have recently tended to be quite correlated with stocks, particularly in the technology and AI sectors.
On Wednesday morning in Singapore, gold rose around 0.5% to US$4,097.51 per ounce. The Bloomberg Dollar Spot Index also rose 0.5%, its highest daily gain since September 25, which is usually a pressure factor for gold, but this time it failed to reverse the recovery trend.
Other precious metals also rallied, with silver, platinum, and palladium all posting gains. This indicates that market interest in hedging assets remains strong, even though some investors are returning to riskier assets such as technology stocks. (asd)
Source: Bloomberg.com
