Gold climbs to near 2-week high
Published 11-APR-2019 07:28 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Gold rose on Wednesday, lifted to their highest in almost two weeks as investors fretted about the global economy and trade tensions, and as the European Central Bank and the US Federal Reserve showed signs that monetary policy will remain accommodative writes Nallur Sethuraman.
Spot gold was up 0.4 percent at $1,308.47 an ounce on Wednesday. Prices hit their highest since March 28 at $1,310.50 during the session.
US gold futures settled 0.4% higher at $1,313.90.
Gold drew support from political and economic worries such as the Brexit, US politics and trade tensions between Washington and China and the Euro Zone, said George Gero, managing director at RBC Wealth Management.
European Central Bank President Mario Draghi raised the prospect of more support for the struggling euro zone economy on Wednesday. Minutes of the Fed's latest meeting showed a patient stance on interest rate hikes. Analysts said these factors supported gold prices.
Minutes of the Fed's March 19-20 meeting showed policy makers saw the US economy weathering a global slowdown, with no recession for the United States in the next few years.
Lower interest rates reduce the opportunity cost of holding non-yielding gold, which is seen as a safe haven during times of political and economic uncertainty.
US consumer prices increased in March by the most in more than a year, but underlying inflation remained benign against the backdrop of slowing domestic and global economic growth.
World stocks inched up but remained below the six-month high reached earlier this week, as investors worried about US President Donald Trump threatening more tariffs against the European Union.
Higher stock indexes worldwide have constrained some buying in safe-haven metals, said Jim Wyckoff, senior analyst at Kitco Metals.
"If the monetary policies are going be easing around the world then the financial system would be much more liquid, which might augur some buying in commodities," Wyckoff said.
While gold prices are above $1,300, investors are looking for more reasons to buy the metal, analysts said.
Holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for the seventh consecutive session on Tuesday and are at their lowest level since November.
In other metals, spot platinum climbed 1.6 percent to $901.25 an ounce. On Monday it touched its highest since last May at $914.74.
Palladium fell 0.1 percent to $1,387.51, while silver firmed by 0.2 percent to $15.24.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.