Gold Remains Well Supported at $1215

Gold recovered from early losses on Monday after Hong Kong pro-democracy supporters clashed with police, keeping Asian stocks on edge and boosting bullion’s appeal as a safe haven, though the strength in the dollar kept the metal’s gains in check.

Riot police advanced on Hong Kong democracy protesters, firing volleys of tear gas after launching a baton-charge in the worst unrest there since China took back control of the former British colony two decades ago.

Gold, seen as an alternative investment during times of political instability, got a boost as Hong Kong shares sank more than 2 percent to a 2-1/2-month low on Monday, while MSCI’s broadest index of Asia-Pacific shares outside Japan dipped about 1 percent.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.