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Gold Retains Haven Status

Gold Retains Haven StatusGold Retains Haven Status

Gold futures advanced moderately in Monday trading as investors’ risk-aversion propped up market havens that include the yellow metal and the Japanese yen.

Gold continues to move in veritable lock-stop with currency action, although a limited move for the dollar moving toward the US market open on Monday did cap gold’s climb, MarketWatch reported.

“The yen strengthened for a seventh day in a row in Tokyo. The [dollar-yen] hit a fresh 17-month low of 107.62 despite the out flowing cash [from Japanese stocks]. The safe haven flow is not simply confined to the Japanese yen—gold prices are also higher … owing to dollar weakness,” said Ipek Ozkardeskaya, analyst with London Capital Group, in a note.

The yen has gained despite ramped up rhetoric from officials there who are worried that a too-strong yen will harm exports. Yet monetary officials have so far refrained from official market intervention to hold down the yen.

June gold was up $7.40, or 0.6%, to $1,251.30 early Monday. At Friday’s close, gold logged its biggest weekly gain—up 1.7%—in three weeks as fresh global growth worries and expectations for a lackluster corporate earnings season just getting underway also brought in bids for the yellow metal. The SPDR Gold Trust  ETF rose 0.8%.

May silver  was up 19 cents, or 1.3%, to $15.59 an ounce early Monday; silver scored its largest weekly gain last week since March 4.

 

Financialtribune.com