Gold Holds Two-Day Rise After Trade, Geopolitical Jitters
Gold steadied after two days of gains, supported by investor nervousness over the impact of trade tensions on the global economy along with the latest geopolitical news from the Middle East.
Bullion was trading near $3,290 an ounce in early Asian trade, having risen more than 2.5% over the previous two sessions. After its worst week since November, the precious metal received a fresh boost after Moody’s Ratings pulled the U.S.’s top credit rating, renewing concerns about the country’s ballooning budget deficit and prompting some traders to seek safe havens.
Support for the safe haven asset was also boosted by a CNN report indicating Israel may be planning to strike Iran’s nuclear facilities. It was not clear whether a final decision to carry out the strikes had been made, the report said.
Despite the recent volatility, gold has gained about 25% this year, also supported by diversification away from dollar-denominated assets by the official and private sectors. On Tuesday, its rise above the key $3,250 an ounce level helped trigger short covering, pushing it higher. Gold was little changed at $3,293.44 an ounce at 8:19 a.m. in Singapore. The Bloomberg Dollar Spot Index was slightly lower. Silver and palladium were flat, while platinum declined.
Source: Bloomberg
