Gold Futures Rebound On Safe-haven Appeal, Settle Modestly Higher
Gold prices moved higher on Tuesday as investors sought the safe haven commodity following another sharp drop in stock prices and the dollar firmed up against most of its peers.
The dollar index rose to 93.48 before paring some gains. Still, at 93.35, it was firmly placed in positive territory with a gain of almost 0.7%.
Gold futures for December ended up $8.90 or about 0.5% at $1,943.20 an ounce, the highest settlement since last Wednesday. Gold prices fell to a low of $1,911.70 an ounce by mid-morning after opening on a weak note.
Silver futures for December closed higher by $0.279 at $26.991 an ounce, while Copper futures for December settled at $3.0250 per pound, down $0.0370 from previous close.
Another strong round of selling in U.S. technology stocks that pushed the Nasdaq down by more than 3% today, and widespread losses in other sectors in the U.S. and European markets prompted investors to go for the yellow metal. The Dow and the S&P 500 slipped more than 1.5% and 2%, respectively.
Rising tensions between the U.S. and China, and reports showing a jump in coronavirus cases in several parts across Europe and in India have raised concerns about economic growth.
Data showing a sharp contraction in Eurozone GDP in the second quarter too supported gold’s uptick.