Gold Off Tuesday, Risk Appetite Returning

Gold Off Tuesday, Risk Appetite Returning

$XAU, $GLD

Gold prices slid Tuesday in Asia as the appetite for risk among investors has returned.

Gold Futures for Dec 19 delivery were down 0.9% at $1,497.95 oz by 12:10 AM EDT (04:10 GMT) on the COMEX division of the New York Merc.

Positive trade developments between the US and China sent stocks higher this month as the 2 sides confirmed in-person meetings will resume in October. That caused gold to lose some safe-haven appeal.

Asian markets were mixed Tuesday, with Chinese stocks underperforming following the release of weak inflation data. Australian stocks also fell on weak business confidence.

Separately, reports that the flood of China’s central bank buying of gold is drying up also put pressure on gold prices.

The PBoC raised its gold holdings to 62.45-M oz in August from 62.26-M oz a month earlier, according to data on its website at the weekend. However, that represented purchases of only 5.91 tonnes in the month, after an average of 11.75 tonnes a month since December.

Despite the fall Tuesday, the precious Yellow metal has risen about 19% this year through mid-August. Prospect for lower interest rates and safe-haven demand and slowing global economic growth were cited as tailwinds for gold

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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