PRECIOUS gold rises as Evergrande risks grow large and dollars slide

0


[ad_1]

B.and Arundhati Sarkar

September 24 (Reuters)Gold made some losses on Friday after falling 1% last session, aided by a weaker dollar and as concerns over the fate of China’s Evergrande re-emerged, the gold bullion’s safe haven status was upgraded.

Spot gold XAU = rose 0.7% to $ 1,754.73 an ounce by 0924 GMT. US gold futures GCv1 rose 0.3% to $ 1,755.10.

Bullion helps by making the dollar index cheaper for those holding other currencies = USD lingered near a week low in the previous session.

This contrasted with Thursday, when gold fell more than a month’s lows as Fed rate hike bets largely overshadowed a fall in the dollar – an unusual occurrence. USD /

Gold is getting support from a weaker dollar, with China’s warning to local authorities of a possible collapse of Evergrande serving as “another reminder that risk still prevails,” said Quantitative Commodity Research Analyst Peter Ready.

But the prospect of interest rate hikes by several central banks is “a negative mix for gold,” added finished.

Higher interest rates increase the opportunity cost of holding gold bars that do not pay interest.

Gold also competes with the dollar as a safe store of value in times of financial or political uncertainty.

But while uncertainty could accelerate a flight to safety, investors could plunge towards the dollar at the expense of gold, FXTM analyst Lukman Otunuga said.

“Despite the caution and tension this week, gold is up a meager 0.1%. This performance suggests gold may be preoccupied with other issues ranging from Fed easing to rate hike expectations.”

silver XAG = climbed 0.8% to $ 22.66 an ounce and up 1.2% for the week so far.

palladium XPD = rose 1% to $ 2,003.27 but was on track for a third straight weekly decline.

platinum XPT = slipped 0.6% to $ 983.29. However, the metal should break through two consecutive weeks of decline.

(Reporting by Arundhati Sarkar in Bengaluru; editing by Jason Neely)

(([email protected]; twitter.com/Arundhati_05; +1 646 223 8780 ext .: 2776))

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.


[ad_2]

Leave A Reply

Your email address will not be published.