33857
Gold Rises Again
World Economy

Gold Rises Again

Gold gained around 4% overall and overnight in Asia, hitting a nine-week high above $1,110 an ounce, with prices benefitting from major upheaval on the stock markets this week.
The spot gold price touched $1,112 during the session in Singapore on Friday, it’s highest since the beginning of November, but fell back sharply to around $1,097 amid a recovery for Chinese equities after Beijing allowed some appreciation in the yuan. Questions are now being asked over whether its “safe-haven” rally is over and done, The Week reported.
The precious metal has historically been a store of value in times of strain–and equity markets around the world have been in turmoil this week, particularly after a major slump in China. Such externally driven rallies tend to be short-lived, however, unless the underlying problems are prolonged and develop into a full-blown financial crisis as happened in 2008, after which gold embarked on a two-year surge.
Analysts at HSBC told Reuters that in the current environment, “the only way to trade gold is to take a view on the equity markets and on the Chinese market in particular”.
Should the 2% rise on the Shanghai stock market prove to be little more than a relief rally, gold could yet be set for further gains.
If, however, the calmer mood on equity markets persists, then the focus for gold will switch back to medium-term factors–interest-rates rises in the US in particular.

 

Short URL : http://goo.gl/7APKBf
  1. http://goo.gl/6dHDyI
  • http://goo.gl/O6FX6Q
  • http://goo.gl/YF1WCE
  • http://goo.gl/4fK2QS
  • http://goo.gl/apI03g

You can also read ...

Both, Russia and China, have intensified efforts in recent years to settle bilateral trade not in US dollars, but in rubles and yuan. Gold is considered important by both countries.
The issue of when a global reserve currency begins or ends is...
Norway’s Sovereign Wealth Fund  Hits $1 Trillion
The Norwegian sovereign wealth fund, the largest in the world...
The IMF could write off its debt and lighten Greece’s burden.
“Beware of Greeks bearing gifts,” wrote the ancient Roman poet...
Just over a quarter of Aussies have amassed debts equal to three times their income.
Australians’ average weekly household income grew by A$213 ($...
Kazakh Economy Grows by 4.3%
The economic growth in Kazakhstan was at 4.3% since the...
Multinational digital firms, mostly based in the US, have pushed for globally harmonized rules that would provide predictability and limit the space for national governments to intervene in digital flows.
The increasing digitization of the global economy is changing...
Ukraine Raises $3b in First Bond issue
Ukraine has raised $3 billion in its first sovereign bond...
Janet Yellen
As the Fed starts unwinding the stimulus it provided to snap...

Trending

Googleplus