Gold Up Near $1220 on U.S. Dollar and Stock Falls

Gold extended an advance from a nine-month low as a retreat in the dollar and global equities boosted demand for an alternative investment. Silver, platinum and palladium climbed.

Gold for immediate delivery rose as much as 0.7 percent to $1,222.47 an ounce, and traded at $1,219.31 at 12:20 p.m. in Singapore, according to Bloomberg generic pricing. The metal dropped to $1,204.57 on Sept. 30, the lowest level since Jan. 2 and within 0.5 percent of erasing this year’s gains.

Data yesterday showed euro-area factories expanded at the slowest pace in 14 months in September and U.S. manufacturing cooled. A measure of factory output in China was unchanged in September from August. Asian stocks fell a fifth day today after U.S. equities tumbled, with the MSCI All-Country World Index dropping yesterday to a five-month low. The Bloomberg Dollar Spot Index retreated from a four-year high today.

Bloomberg

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.