Gold holds firm above $1,500 on global growth worries

Tuesday, 13 August 2019 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Gold rose on Monday, holding above the psychological $1,500 level as investors’ demand for safe-haven bullion increased on concerns over the impact of the trade war between Washington and Beijing on global economic growth.

Spot gold was up 0.5% at $1,504.55 per ounce at 1202 GMT, holding close to last week’s six-year high of $1,510. US gold futures were up 0.6% at $1,517.40 an ounce.

“(There are) fears of slowdown in the global economy, and the trade talks (between the United States and China) are not going the best way,” ActivTrades analyst Carlo Alberto De Casa said. “There is still room for gold to go up.” US President Donald Trump said on Friday he was not ready to make a deal with China and even called the September round of trade talks into question.

The yen and bonds - also often seen as offering protection from risk - rose, while stocks struggled, hurt by fears a prolonged trade war and Britain’s looming exit from the European Union could tip top economies into recession.

With no sign of trade tensions between the US and China abating, MKS PAMP said in a note that gold could continue to build momentum, with global growth concerns and central bank easing also helping the rally.

Analysts said negative debt yields around the globe were further supporting bullion.