Gold comes alive in biggest jump since '16 after equities roiled | Fin24
In partnership with
  • Ace vs. SA Reserve Bank

    The ANC secretary general has again weighed in on the central bank's mandate.

  • Mandela Day

    Nationalisation, privatisation and land: What Mandela told business in 1990 still resonates today.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


Gold comes alive in biggest jump since '16 after equities roiled

Oct 12 2018 09:18
Marvin G. Perez and Ranjeetha Pakiam, Bloomberg

Gold may have finally snapped out of its inertia.

On Thursday, prices posted the biggest gain since June 2016, when the UK voted to exit the European Union, after a slump in global equity markets stoked demand for the metal as a store of value.

Bullion received another shot in the arm after data showing weaker-than-expected US inflation raised speculation that the Federal Reserve may slow the pace of interest rate increases.

Gold, which hit a 10-week-high of $1 226.42 an ounce on Thursday, had held near $1 200 since late August as traders weighed geopolitical risks that could boost the metal’s allure as a haven against rising interest rates that curb its appeal. On Friday, prices eased 0.3% to $1 220.40 by midday Asian trade, but were still poised for a second weekly advance.

“Gold markets finally showed some life, but it took an absolute pummeling on equity markets to trigger demand,” Stephen Innes, head of Asia Pacific trading at Oanda Corp in Singapore, said in a note. The softer-than-expected CPI print and risk aversion remaining front and center provided the catalyst to test significant resistance at $1 225, he said.

A gauge of gold-mining equities tracked by Bloomberg Intelligence also had the biggest increase since 2016 on Thursday. On Friday, as shares in Asia steadied, Newcrest Mining, Australia’s largest producer, rose 3.8% and Zijin Mining Group climbed 5.1% in Hong Kong.

In other precious metals moves, silver was little changed at $14.5817/oz; heading for its second weekly drop, platinum was steady at $840.82/oz; and set for its second weekly advance, palladium gained 0.3% to $1 083.50/oz.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

commodites  |  gold  |  markets


Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

FaceApp has been at the centre of a debate on data security. What is your view?

Previous results · Suggest a vote