The gold price once again tested the $1,200 level during the Asian trade today after not being able to hold the level on Wednesday. Growing risk-off sentiments in the market is helping to buoy the precious metal after a sharp sell-off in US equities overnight.
Spot gold price was last seen at $1,199.80 per ounce, up $4.80 from where it ended yesterday. Silver also touched its near term resistance of $17 after trying yesterday. The metal was last seen at $17.02, up nine cents.
In overnight news, February US durable goods orders fell 0.4 percent against a predicted increase of 0.3 percent. The poorer numbers could have triggered some risk-off ahead of unemployment claims data scheduled to be out today as well as the release of fourth quarter GDP figure on Friday.
Stocks indices in the US came off sharply on Wednesday, with the Nasdaq leading losses of 2.36 percent. The Dow slipped 1.62 percent while the S&P 500 is lower by 1.46 percent.
Asian equities were however mixed, with losses in the Nikkei 225 at 1.43 percent while the Shanghai Composite is up 0.34 percent.
Oil prices surged as well, with brent crude up nearly six percent on Thursday afer Saudi Arabia began military operations in Yeman.
“Gold and crude oil have a historical positive correlation as the two are most frequently traded in commodity indices. As crude oil tends to comprise the largest weight in these indices, portfolio rebalancing would thus lead to indirect support for gold in order for these indices to maintain the appropriate weight in each commodity,” said a market commentary from HSBC Securities.
The PGMs were steadier following gold’s move upwards – Platinum is $2 higher at $1,146 while palladium slipped $0.50 to $764.
The post Gold price hovers around $1,200, benefits from risk-off sentiments appeared first on The Bullion Desk.
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