Gold Recovers from Decline as Market Speculation Grows
Gold recovered from most of its early losses to trade little changed, as traders weighed the metal’s outlook amid a U.S.-led trade war.
Bullion hit a record above $3,500 an ounce on Tuesday before settling near $3,372 after dropping nearly 2% earlier.
“Every pullback presents a good entry opportunity,” said Shiyao Liu, an analyst at Zijin Tianfeng Futures Co., citing the long-term nature of its support.
Bullion is still up more than a quarter this year as the trade standoff, expectations of a global slowdown and tensions between U.S. President Donald Trump’s administration and the U.S. Federal Reserve have combined to fuel demand for the safe-haven asset. The gains have been supported by investors expanding holdings in exchange-traded funds, as well as central bank buying.
The sudden reversal in the precious metal’s price on Tuesday came after technical market metrics showed bullion was overbought, prompting some investors to book profits. Also, Trump backed away from a move to oust Fed Chairman Jerome Powell, while also making positive comments about the trade war with China.
Gold for immediate delivery was little changed at $3,360 an ounce at 10:55 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver, which had fallen more than 1% in early trading, also recovered. Platinum and palladium were slightly higher.
Source: Bloomberg
