📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Gold Climbs, but Upside in Doubt With Price Under $1,200

Published 10/09/2018, 01:54 PM
Updated 10/09/2018, 02:20 PM
© Reuters.  Gold rebounded slightly.
XAU/USD
-
XAG/USD
-
GC
-
HG
-
SI
-
PA
-
PL
-
US10YT=X
-

Investing.com - Gold rebounded slightly Tuesday, as the recent jump in U.S. bond yields and persistent concerns over global growth sparked an investor flight toward safe-havens.

But futures for the yellow metal remained below the $1,200 level that's critical to the confidence of gold bugs, raising questions on its potential upside after Monday’s 1.4% tumble, the sharpest selloff in a day since Aug. 13.

“While the gold market eventually rejected a large portion of the initial washout, the damage on the charts was significant and the tone of the market might be damaged so much that further liquidation is expected directly ahead,” ADM Investor Services said in its outlook on the precious metal.

Gold futures for December delivery were up $2.10, or 0.2%, at $1,190.70 per troy ounce by 1:48 PM ET (17:48 GMT) on the COMEX division of the New York Mercantile Exchange. It earlier settled the session at $1,191.15, up $2.90, or 0.2%, on the day.

The gains came as equity markets grappled with the moves in U.S. Treasury yields. The 10-Year Treasury note's yield surged to a fresh seven-year peak earlier Tuesday, spurred by expectations for a potentially faster pace of rate hikes from the Federal Reserve. But the yield gave back those gains and more later in the day.

On Monday, December gold settled at $1,184.40, its lowest close since Sept. 28, as the dollar rebounded amid the closure of U.S. bond markets for the Columbus Day holiday.

Gold also benefited on Tuesday from an increase in risk-aversion after the International Monetary Fund cut its global growth forecast, warning that trade conflicts are starting to have a serious impact on the global economy.

The IMF downgraded its outlook for the U.S., China, the euro zone and the UK, saying it now expects the global economy to expand by just 3.7% in 2018 and 2019, down from 3.9% before.

Elsewhere on COMEX precious metals trading, December silver advanced 0.5% to $14.44 per troy ounce. January platinum was trading up 1.2% at $828, while December palladium fell 0.5% to 1,063.60.

Among base metals, December copper rose 1.6% to $2.812.

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.