🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

PRECIOUS-Gold sticks near 3-month high as risk aversion in play

Published 03/02/2016, 11:53 am
Updated 03/02/2016, 12:00 pm
© Reuters.  PRECIOUS-Gold sticks near 3-month high as risk aversion in play
XAU/USD
-
GC
-

MANILA, Feb 3 (Reuters) - Gold stabilised near a three-month top early on Wednesday, its safe-haven appeal kept intact by concerns over a wobbly global economy that has put share markets under pressure.

FUNDAMENTALS

* Spot gold XAU= was off 0.2 percent at $1,127.07 an ounce by 0044 GMT, not far below Tuesday's peak of $1,130.30, its strongest since Nov. 3.

* U.S. gold for April delivery GCcv1 was flat at $1,127.70 an ounce.

* Global interest rates are likely to go even lower before they rise as financial market volatility and the spectre of deflation raise fresh doubts about central banks' ability to fulfil their mandates, policymakers and economists said. That should be supportive for gold, an asset that thrives on uncertainty. Expectations that the Federal Reserve may also go easy on raising interest rates amid the global economic headwinds had helped gold rise the most in a year in January.

* But Kansas City Fed Bank President Esther George said the Fed should push ahead with interest rate hikes because of the strong fundamentals of the U.S. economy. India's latest attempt to curb the country's love for gold - by forcing buyers of high-value jewellery to disclose their tax code - has boosted unofficial trading in the world's second-biggest gold consumer, rather than promote transparency and dent demand. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Asian shares sagged as oil prices sank again due to fading hopes of a deal to curb a global glut, prompting investor to seek shelter in safe-haven assets and lifting bonds and gold to multi-month highs. MKTS/GLOB

* The yen and euro held on to overnight gains against the dollar, driving down U.S. debt yields to nine-month lows and dulling the greenback's appeal. USD/

DATA AHEAD (GMT)

0145 China

Caixin services PMI

Jan

0855 Germany

Markit services PMI

Jan

0900 Euro zone

Markit services PMI

Jan

1000 Euro zone

Retail sales

Dec

1315 U.S.

ADP national employment

Jan

1500 U.S.

ISM non-manufacturing PMI

Jan

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.