Published: Sat, August 10, 2019
Markets | By Otis Pena

Precious: Gold surges above $1500, highest in 6 years

Precious: Gold surges above $1500, highest in 6 years

A Federal Reserve official said on August 6 it was appropriate to "wait and see" how the upcoming data was, before deciding whether rates should be cut again at the central bank's next meeting in September.

Among other precious metals, silver rose 1.7% to $16.73 per ounce, its highest since June 2018.

Gold futures on the COMEX division of the New York Mercantile Exchange soared on Wednesday above 1,500 USA dollars per ounce, boosted by stronger safe haven demand. The move extends this year's advance to 17 per cent, with gains underpinned by investor inflows into exchange-traded funds.

Meanwhile, gold futures in the United States of America rose to about $1,497, an increase of about 0.9 per cent.

Miners also benefited from the rally, with AngloGold Ashanti Ltd. rising 4.8% to its highest price in more than seven years.

On Monday, gold surged 2% to its highest level in more than six years. Tracking gold, silver jumped ₹650 to ₹43,670 per kg.

Gains for Asian shares capped by fresh trade jitters, China stocks fall
American technology companies that hoped to soon resume their sales to Huawei might have to wait a little longer. Based on these rates, USA customs agents will begin collecting duties from importers.

The most active gold contract for December delivery rose 35.40 US dollars, or 2.39 percent, to settle at 1,519.60 dollars per ounce.

Last month, the Fed reduced borrowing costs for the first time in more than a decade, responding in part to the impact of the trade war.

Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion. Goldman Sachs Group Inc. expects that there will be a total of three USA rate reductions this year. "Gold is in a major bull market".

Speaking to the media, DailyFx's currency analyst Ilya Spivak cautioned, "Trade wars are the catalyst for the latest gains". Influential Wall Street bank Goldman Sachs said it no longer expects Washington and Beijing to agree on a truce to end their prolonged trade dispute before the November 2020 Presidential election.

Further support for the rally has come from central-bank buying, with authorities in China, Russia, Poland and Kazakhstan all boosting holdings. "China deal in the medium term", Jingyi Pan, a strategist at IG Asia Pte in Singapore, said in an email.

-With assistance from Krystal Chia.

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