Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Gold prices hit record highs near $2,300 as Taiwan quake dents risk appetite

Published 04/03/2024, 01:00 AM
Updated 04/03/2024, 01:00 AM
© Reuters.

Investing.com-- Gold prices rose in Asian trade on Wednesday, remaining in sight of record highs amid increased safe haven demand after a devastating earthquake in Taiwan, while uncertainty over U.S. interest rates also boosted gold demand. 

A broad sell-off in stock markets, as risk appetite deteriorated, also fueled demand for gold, even as the dollar and U.S. Treasury yields shot up tracking hawkish comments from top Federal Reserve officials. 

Risk appetite was dealt a fresh blow on Wednesday after an earthquake in Taiwan battered the island’s infrastructure and its top chipmaking factories, while also sparking Tsunami warnings in parts of Japan. 

Spot gold rose 0.3% to $2,286.40 an ounce, remaining in sight of a record high of $2,288.43 hit on Tuesday, while gold futures expiring in June rose 1.1% to $2,306.25 an ounce and were just below lifetime highs of $2,308.85 an ounce by 00:47 ET (04:47 GMT). 

The yellow metal was further encouraged by the dollar retreating from 4-½ month highs on Wednesday. 

Gold prices keep $2,300 in sight despite Fed pressure

Increased safe haven demand helped gold prices largely power past increased concerns over higher for longer U.S. interest rates.

Several Fed officials said in separate addresses that sticky inflation and strength in the labor market could potentially delay the Fed’s plans to cut interest rates. 

Their comments came just days before key nonfarm payrolls data for March, due this Friday. The data has consistently beaten expectations in recent months, amid persistent strength in the U.S. labor space. 

Other precious metals also benefited from improved safe haven demand and dollar weakness. Platinum futures rose 0.3% to $940.05 an ounce, while silver futures rose 2.2% to $26.480 an ounce. 

Copper prices encouraged by positive Chinese data 

Among industrial metals, copper prices rose on Wednesday and remained in sight of recent 11-month highs, following positive purchasing managers index (PMI) data from top importer China.

Three-month copper futures on the London Metal Exchange rose 0.6% to $9,070.50 a ton, while one-month U.S. copper futures rose 0.5% to $4.1022 a pound.

Private PMI data on Wednesday showed growth in China’s services sector improved in March. The reading came just days after positive official PMIs on China’s manufacturing sector, which signaled improving economic conditions in the world’s largest copper importer. 

 

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.