Gold prices extended gains on Thursday
Investing.com – Gold prices extended gains on Thursday on safe-haven demand after global markets tumbled. A weaker dollar was also cited as supportive.
Gold futures for December delivery were up $3.30, or 0.3%, at $1,196.8 a troy ounce by 1:20AM ET (05:20 GMT).
“Investors might start to look for alternative investments to equities, as factors such as high country debt levels and emerging inflation can cause headwinds to higher equity prices,” said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
“With the markets going down people are increasing their allocation towards gold,” said Michael Matousek, head trader at U.S. Global Investors.
Gold is now down more than 13% from its April peak as the dollar strengthened on concerns over trade disputes between the U.S. and China and in the run-up to a Fed rate hike in September.
The precious metal fell 1.4% on Monday, its sharpest one-day loss in two weeks when the bond market was closed for the Columbus Day holiday.
The U.S. Dollar Index, which measures the greenback’s strength against a basket of six major currencies, was down 0.3% at 94.98 on Thursday.
Meanwhile, rising bond yields have also been putting pressure on gold, which pays no interest.
The U.S. Federal Reserve raised rates three times this year and traders widely expect it to raise it once more by the end of 2018.
On Wednesday, U.S. President Donald Trump continued his attacks on the central and blamed the central bank’s policy decision for Wednesday’s sharp market decline.
“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” the president said
“Actually, it’s a correction that we’ve been waiting for for a long time, but I really disagree with what the Fed is doing,” the President added.
Gold Prices Extend Gains on Safe-Haven Demand; Dollar Falls
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