Moneycontrol
Last Updated : Oct 12, 2018 08:07 AM IST | Source: Reuters

Gold near highest in over two months as equity plunge boosts safe-haven appeal

Spot gold was down 0.2 percent at $1,221.06 an ounce at 1255 GMT. On Thursday, it jumped about 2.5 percent after marking its highest since July 31 at $1,226.27. That was also the metal's best one-day percentage gain since June 2016.

Rs 12,000 crore | 2018 | Kolkata–based gold trader Nilesh Parekh was arrested by Directorate of Revenue Intelligence sleuths for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. He was earlier arrested by CBI for allegedly of siphoning off bank loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong.
Rs 12,000 crore | 2018 | Kolkata–based gold trader Nilesh Parekh was arrested by Directorate of Revenue Intelligence sleuths for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. He was earlier arrested by CBI for allegedly of siphoning off bank loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong.

Gold edged down on Friday but held near an over two-month high hit in the previous session, when prices surged over 2 percent as a rout in global stock markets boosted the metal's safe-haven appeal.

FUNDAMENTALS

Spot gold was down 0.2 percent at $1,221.06 an ounce at 1255 GMT. On Thursday, it jumped about 2.5 percent after marking its highest since July 31 at $1,226.27. That was also the metal's best one-day percentage gain since June 2016.

US gold futures were down 0.3 percent at $1,224.50 an ounce.

Asian shares held steady on Friday after a nine-day losing streak, but sentiment was frail after Wall Street shares crumbled and expectations of market volatility shot up to an eight-month high.

Worries about the economic impact of the Sino-US trade war, a spike in US bond yields this week and caution ahead of earnings seasons have all been cited as potential reasons behind the selloff, the biggest market rout since February.

The dollar fell to a near two-week low on Thursday against a basket of currencies as traders pared greenback holdings on lower U.S. Treasury yields and further equity losses on Wall Street.

The stock sell-off, rising trade tension with China, slower global growth and verbal pressure from the White House are unlikely to dent the US Federal Reserve's rate hike plans in an economy performing in line with the central bank's forecasts.

US President Donald Trump launched a second day of criticism against the Fed on Thursday, calling its interest rate increases a "ridiculous" policy that was making it more expensive for his administration to finance its escalating deficits.

US consumer prices rose less than expected in September, held back by a slower increase in the cost of rent and falling energy prices, as underlying inflation pressures appeared to cool slightly.

Investors searching for perpetrators and victims in this week's US stock market selloff pointed to a familiar source: number-crunching fund managers and machines.

China's latest attempts at restricting outward investment by its residents show just how nervous policymakers in the world's second largest economy are about possible capital flight spurred by a broadening Sino-US trade war.

International Monetary Fund Managing Director Christine Lagarde on Thursday warned countries against engaging in trade and currency wars that hurt global growth and imperil "innocent bystanders."

 
First Published on Oct 12, 2018 08:04 am
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