Gold continued to trade around seven-week highs on Monday afternoon while a sell-off in global financial markets continued. As well, palladium fell to its lowest in three years.
The spot gold price was last at $1,160.2/1,160.5 per ounce, little changed from Friday’s close.
The global sell-off in equity markets was triggered by falls in Chinese markets – stock markets in Asia plummeted on Monday, with the Shanghai composite index dropping 8.49 percent on concerns about the Chinese economy following a run of disappointing data.
“Gold is holding up relatively well so far in the face of the equities-led slide in other commodities and emerging market FX,” ICBC Standard Bank analyst Tom Kendall said.
Gold climbed to $1,170.1 – its highest since July 7 – after the US markets opened. The Dow Jones industrial average was down more than 1,000 points shortly after the start of the US trading session but the initial sell-off eased later.
In Europe, the FTSE 100 closed down a heavy 4.5 percent but had earlier been more than 6.2 percent lower.
The VIX index, also known as the fear index, hit its highest since January 2009 earlier at 53 – a sign of widespread investor alarm.
As for the other precious metals, silver was last at $15.03/15.08 per ounce, down 26 cents. Platinum at $995/999 fell $23 and palladium hit its lowest in three years at $566 – it was last at $573/578, down $28.
(Editing by Mark Shaw)
The post Gold holds near multi-week highs on China’s Black Monday appeared first on The Bullion Desk.
No comments:
Post a Comment