Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Gold Up 1% , Boosted by US Govt Shutdown, Mnuchin Move on Banks

Published 12/24/2018, 02:36 PM
Updated 12/24/2018, 02:36 PM - The partial U.S. government shutdown and growing worries of a global recession seem to be taking gold slowly but more surely toward the $1,300 per ounce level targeted by precious metals bulls.

Comex gold futures settled up $13.70, or almost 1%, at $1,271.80 a troy ounce. It was the sixth higher close in seven sessions for the yellow metal.

The precious metal hit a six-month high of $1,273.90, a level last seen since June, when it hovered at $1,300 levels.

Risk aversion was widespread across markets on Christmas Eve, bolstering gold's standing as a safe-haven.

On Wall Street, theDow fell almost 3%, while the S&P 500 lost about 2.64%, moving closer to bear market territory on concerns about Treasury Secretary Steve Mnuchin raising the question of bank liquidity.

Oil prices, meanwhile, fell nearly 7 percent, bringing the 10-week rout in U.S. crude to 45%

Reports over the weekend that Trump has privately discussed the possibility of firing Federal Reserve Chairman Jerome Powell, whom he appointed, also added to gold's standing as an hedge against financial and political troubles.

Mnuchin has, however, tried to defuse the Powell situation, saying in a tweet that Trump told him he had "never suggested firing" the Fed chairman

The Fed lifted rates for the fourth time this year last week and kept most of its guidance for additional hikes over the next two years, drawing the ire of Trump, who has repeatedly attacked the Fed's tightening as damaging to the economy.

In other precious metals on COMEX, silver futures rose 0.9% to $14.84 a troy ounce.

Palladium gained 1.2% to $1,172.80 per ounce, while sister metal platinum shed 0.9% to $788.40.

In base metals, COMEX copper fell 0.5% to $2.66 per pound.

Latest comments

Gold has passed 1270 this year then Gold will hit 1500 next year. Gold is the new bitcoin boom.
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.