Gold Steady at $1218 as Global Equities Drop

Gold futures rose as a drop in global equities boosted demand for the precious metal as an alternative investment.

Shares fell as tens of thousands of protesters took the streets in Hong Kong, pressing for free and open elections. Gold has slumped 5.3 percent in September, on pace for its biggest monthly loss this year, amid a rally to record for U.S. stocks and as the dollar climbed to the highest since 2010 against a basket of 10 currencies.

The metal is moving closer to erasing its 2014 advance amid low inflation and bets that the U.S. recovery will prompt the Federal Reserve to boost interest rates. While bullion reached this year’s peak in March as political tensions escalated in Ukraine, the demonstrations in Hong Kong aren’t “enough to turn the market” from its bearish trend, said Jordan Kotick, the head of cross-asset strategy at RBC Capital Markets in Toronto.

Bloomberg

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