PRECIOUS-Gold firms on sparse trade as economic concerns support

Published 24/12/2019, 05:44 am
© Reuters.  PRECIOUS-Gold firms on sparse trade as economic concerns support
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
XPD/USD
-

(Updates prices)

* New orders for U.S.-made capital goods barely rise

* Gold hits more than one-week high; platinum rises 3%

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Karthika Suresh Namboothiri

Dec 23 (Reuters) - Gold prices gained on Monday on sparse trade ahead of the holiday season, with lingering concerns about the health of major global economies supporting demand for safe-haven bullion.

Spot gold XAU= was up 0.5% to $1,484.97 per ounce as of 01:33 p.m. ET (1833 GMT). Prices notched $1,485.71 earlier in the session, the highest since Dec. 12.

U.S. gold futures GCcv1 settled 0.5% higher at $1,488.70 per ounce.

"Investors are looking at political risks in the longer term ... There are potential economic risks still in the majority of economies. That's not going to go away in a hurry," said INTL FCStone analyst Rhona O'Connell.

The United States and China have still not signed a so-called Phase 1 trade deal and tensions in the Middle East are contributing to gold's appeal, she added.

U.S. President Donald Trump said on Saturday the United States and China would "very shortly" sign the trade agreement. said on Monday it would lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year. the world's two largest economies have exchanged banter about the conditions of the trade deal, there is much room for uncertainty. Any hints of a fall-through in talks could propel gold higher, analysts say.

The 17-month trade war has rocked markets and fanned global recessionary fears.

China's economy is expanding at its weakest rate in nearly 30 years and could face more downward pressure next year. Canada's economy unexpectedly shrank by 0.1% in October, the first monthly decline since February. data from the United States provided little respite, with new orders for U.S.-made capital goods barely rising in November and shipments declining, suggesting business investment will probably remain a drag on economic growth in the fourth quarter. the upbeat tenor of the overall marketplace, the safe-haven metals are showing keen resilience and even a bit of bullishness as global stock markets rally," Kitco Metals senior analyst Jim Wyckoff said in a note.

The S&P 500 and the Nasdaq hit record highs on Monday. .N

Palladium XPD= was up 1.2% at $1,877.60 an ounce, but still far from the previous week's record high of $1,998.43.

Platinum XPT= climbed 2.9% to $935.02 an ounce, while silver XAG= rose 1.3% to $17.41.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-2019 asset returns:

http://tmsnrt.rs/2jvdmXl

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.