Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold rises to 3-month high as weak oil, stocks boost haven demand

Published 02/02/2016, 10:19 AM
Updated 02/02/2016, 10:19 AM
© Reuters. Gold rises to 3-month high

© Reuters. Gold rises to 3-month high

Investing.com - Gold futures traded near a three-month high in North America trade on Tuesday, as retreating oil prices and losses in global equity markets underpinned demand for assets perceived as safer.

Global stock markets plunged as oil prices fell back towards the $30-level, adding to fears over the outlook for global growth.

Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,131.50 a troy ounce, the most since November 3, before trading at $1,128.80 by 15:15GMT, or 10:15AM ET, up 80 cents, or 0.08%.

A day earlier, gold rallied $11.60, or 1.04%, as weak U.S. manufacturing data added to speculation the Federal Reserve may slow any planned interest rate hikes.

Market participants are anticipating just one more rate hike this year, compared with four according to Fed policymakers' guidance. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Prices of the precious metal ended January with a gain of 5.4%, its biggest monthly rise in a year, as investors sought refuge from turmoil in global equity markets. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.

Also on the Comex, silver futures for March delivery dipped 1.8 cents, or 0.13%, to trade at $14.32 a troy ounce during morning hours in New York.

Elsewhere in metals trading, copper edged lower amid ongoing worries over the health of the global economy, especially China.

The red metal lost 3% in January as investors slashed copper holdings amid persistent worries over an economic slowdown in China. The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.