The gold price was down during Asian trading hours on Monday on profit-taking, but analysts see support for the yellow metal as equity markets continued to nosedive on Monday morning.
Spot gold was last at $1,158.9/1,159.2 per ounce, down $1.3 on Friday’s close. Trading ranged from $1,155.7-1,164.3 so far.
In equities, Asian bourses continued to tumble on Monday morning after equity markets in the US and Europe were sold down on Friday over worries of a slowing Chinese economy.
The Shanghai composite index has dipped by 8.5 percent to 3,209.724 so far on Monday morning.
“With the ongoing equity rout and USD depreciation, gold is likely to remain buoyant,” said MKS Capital on Monday morning.
Earlier on, gold prices had advanced on Friday and reached the highest level in the month as traders scaled back views on a US interest rate increase in September, said ANZ Research.
“Clearly, the Fed has been given plenty to ponder as we approach its critical meeting next month. Markets are less convinced that a Fed hike is imminent. The odds were seen as 50:50 at the start of last week, but they have now been pared back to just a 1:3 chance,” the bank said in a note on Monday morning.
In data, no releases of major figures are expected on Monday. But Tuesday the market will look to numbers including the EU’s German Ifo business climate, and the CB consumer confidence and new home sales in the US.
In other precious metals, silver was at $15.11/15.15 per ounce, down $0.16. Platinum was at $1,013/1,018, down $3, while palladium dipped $8 to $590/596 so far on Monday morning.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 241.2 yuan per gram, while December silver was flat at 3,432 yuan per kilogram recently on Monday morning.
The post Gold down on profit-taking but still supported as equities nosedive appeared first on The Bullion Desk.
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