SINGAPORE: Gold reversed early losses on Thursday as volatility in stock markets stoked safe-haven demand, with bullion funds seeing fresh buying from investors.
Spot gold had risen 0.6 percent to $1,236.40 an ounce by 0658 GMT after earlier falling as much as 0.7 percent.
On Wednesday, gold had climbed 2.1 percent to $1,252.91 as lower oil prices dragged down stocks. But the metal gave up most of its gains as crude turned higher, lifting stocks.
“The volatility in oil prices and stock markets, and ‘Brexit’ fears are all contributing to the rising risk averse sentiment in the market,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.—Reuters
Gold jumps in NY
NEW YORK: Gold rose above $1,250 an ounce and neared a one-year high on Wednesday, acting as counter against risk alongside top-rated government bonds as oil’s earlier weakness rippled into global equity markets.
Spot gold rose as much as 2.1 percent to a session high of $1,252.91 an ounce, just shy of a one-year high of $1,260.60 reached on Feb. 11. At 2:25 p.m. EST (1925 GMT), it was up 0.5 percent at $1,233.06.
The market’s rediscovered role as a shelter for risk-averse investors seemed to be gaining traction, traders and analysts said, even as the dollar gained ground against a basket of major currency rivals. The dollar fell later in the day.
“Gold is rising on the back of weak risk appetite, but what stands out today is that the market is rising even though the dollar is higher as well,” Jens Pedersen, senior analyst at Danske Bank, said when the greenback was firm.
“We’ve definitely reached a new range above $1,200 due to re-pricing risks of Fed rate hikes,” Pedersen said. He added that further sustained gains may be capped until the path for monetary policy is clearer.
Technically, gold looks set to test recent highs at a one-year top of $1,260, MKS Group said in a note.
Other precious metals turned lower, with silver down 0.1 percent to $15.28. Platinum was down 0.3 percent at $941.50, while palladium fell 3 percent to $482.72, the lowest since Jan. 20.—Reuters
