Gold News from Bullion By Post
The gold news price is trading at a new four week high as investors shy away from risky assets and turn towards the ultimate safe haven.
Concern over global growth continues to drive stock indices lower. Yesterday the Dow Jones Industrial Average, the world’s largest stock market, fell 1.35%.
The world’s largest gold backed exchange traded fund, The SPDR Gold Trust, which is often used as a barometer of investor sentiment, confirmed its holdings increased yesterday by 1.79 tonnes, its first inflow since September 10th.
The inflows started after Fed officials voiced concern that the current economic downturn could delay an increase in U.S. interest rates. Historically the gold price performs well in a low interest rate environment.
The technical picture for the gold price is also bullish after recently forming a triple bottom formation. Some traders are anticipating the price will rise sharply once the $1,240 resistance barrier is broken.
Gold News; up as stock markets continue their retreat
The gold price rose during Asian trading as world equity markets continued their recent sell off. Safe haven buying pushed the gold price up to $1,234.80 per ounce at one point before settling at $1,233.15 per ounce.
Last week a raft of economic data indicated the world’s major economies are slowing caused global stock markets to fall.
On Friday Fed official, Stanley Fischer, expressed concerns over the health of the world economy and said the weak global outlook may hamper America’s ability to normalise their monetary policy after years of quantitative easing and low interest rates.
It would be extremely bullish for gold price if the Fed announced another round of quantitative easing or failed to increase interest rates.
Since the start of September The FTSE 100 has lost around 8% and the German stock market the Dax has retreated over 11%. On Friday ratings agency Standard & Poor’s cut France’s sovereign credit rating from AA+ to AA on concerns French President Hollande is failing to implement economic reforms.
Gold is currently trading at £764.89 per ounce, silver £10.87 per ounce, platinum £785.67 per ounce and palladium £489.60 per ounce.
READ the October Gold News Posts here; https://www.bullionbypost.co.uk/gold-news/