Publications
Partners
Singapore - Gold gained on the final day of the quarter as rising investor anxiety over Deutsche Bank’s finances spurred a selloff in equities and helped to underpin demand for a haven.
Bullion for immediate delivery rose as much as 0.4% to $1 325.45 an ounce and traded at $1 323.74 by 08:45, according to Bloomberg generic pricing. That’s the first gain in four days and pares the metal’s decline this week to 1%.
Traders are seeking haven assets amid increased concern over the health of the financial industry, with Bloomberg News reporting that 10 hedge funds that do business with Deutsche Bank have pared their exposure.
Its shares in the US fell to a record low, and Asian equities retreated. There’s heightened haven buying as anxiety grows over the German lender, Australia & New Zealand Banking said in a note.
Gold has climbed “on some risk-aversion buying due to European banking worries,” said Jeffrey Halley, a market strategist at Oanda Asia Pacific Pte in Singapore.
While the outlook for US interest-rate increases will be the main driver, investors will pay attention to risks from European bank travails and the US presidential election, he said.
Bullion is still lower this week after a surge in US consumer confidence bolstered the case for the Federal Reserve to raise rates this year. Prices also fell as Democratic nominee Hillary Clinton saw her odds of winning the presidency rise after the debate with Republican Donald Trump. Citigroup has said a Trump win in November could spur volatility in gold.
Holdings in exchange-traded funds backed by gold were little changed at 2 031 metric tons on Thursday, according to data compiled by Bloomberg. Bullion of 99.99% purity rose 0.2% to $1 328.80 an ounce on the Shanghai Gold Exchange Spot silver is on course for a 2.9% drop this week, the most in a month, while platinum has declined 2.3% over the period.
Palladium is set for its first back-to-back weekly gain since end-July.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
