Gold Steady Near $2,500 as Traders Take Stock After Market Slump
Gold steadied just below $2,500 an ounce as investors took stock after a broad sell-off that rattled equity and commodity markets, with the weakness stoked by concerns about economic growth.
Bullion was little changed after losing just 0.3% on Tuesday even as a gauge of the US dollar - a go-to asset at time of market stress - rose for a fifth day. The ructions will spur additional interest in payrolls data due Friday. Any signs of labor-sector weakening are likely to support a more aggressive pivot to easing by the Federal Reserve, potentially aiding bullion.
Gold has rallied by more than a fifth this year, supported by growing optimism that the Fed will start cutting rates from this month. Lower borrowing costs typically benefit the metal, which doesn't pay interest. Robust over-the-counter purchases and haven demand have also underpinned the advance.
Spot gold was flat at $2,493.15 at 8:29 a.m. in Singapore, after peaking at a record $2,531.75 in August. The Bloomberg Dollar Spot Index dipped 0.1%. Silver was steady, while palladium and platinum slipped.
Source : Bloomberg
