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Gold, already at multiyear highs, tacks on another 1.5% as trade worries deepen
Article by Rachel Koning Beals in Wall Street Journal Market Watch
Gold’s haven appeal boosted the metal again on Monday as an escalating U.S. – China trade fight sparked a selloff in assets perceived as risky.
“The yellow metal is on the verge of making for a run towards the $1500 an ounce level and after that there is not much resistance until the $1650 region,” said Edward Moya senior market analyst at Oanada. “The trade war, a negative global interest-rate environment and weak corporate earnings are all positive catalysts for the remainder of the summer for gold.”
September silver – which because of its industrial use in addition to haven status can be negatively impacted by the trade news – added 26 cents, or 1.6% to $16.53 an ounce Monday.
“With the negative U.S. economy implications from the trade tariffs and the market pricing for the requirement for further rate cuts, the dollar is being pressured,” said Richard Perry, analyst with Hantec Markets. “This is a double positive impact on gold. Fundamentally, with real yields falling, fold will continue to rise.”
To read this article in Market Watch in its entirety, click here.