The gold price held up during Asian trading hours on Tuesday as the sell-offs on Chinese stock markets continued on Tuesday morning.
Spot gold was last at $1,154.4/1,154.7 per ounce, up $3 on Monday’s close. Trading ranged from $1,151.5-1,156.9 so far.
The Shanghai composite index continued to head south on Tuesday morning, falling 4.05 percent to 3,079.910 so far.
“Gold should continue to hold its value during the current market turbulence, however a material surge higher is unlikely as participants find liquidity by selling all asset classes, including precious metals,” said MKS Group on Tuesday morning.
On Monday, gold had climbed to a seven-week high of around $1,170 due to the global equity turmoil before moving lower to $1,154.6 during US trading.
The precious complex also felt the pain of the broad asset sell-off albeit not as harshly as other commodities, said MKS.
“Market volatility was high through all asset classes, however, gold failed to fall below 1147.20 as the safe haven bid finally supported the metal,” it added.
In data, the German Ifo business climate from the EU, and the CB consumer confidence and new home sales from the US are due later on Tuesday.
In other precious metals, silver was at $14.85/14.9 per ounce, up $0.08. Platinum was at $984/989, up $5, but palladium dipped $5 to $559/564 so far on Tuesday morning.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 240.4 yuan per gram, while December silver was flat at 3,416 yuan per kilogram recently on Tuesday morning.
The post Gold holds up as Chinese equity rout continues appeared first on The Bullion Desk.
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