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Gold Firm as Risk Aversion Takes Hold

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Gold prices are modestly higher and holding just below Monday’s 15-month high in early U.S. trading Tuesday. Some more safe-haven demand amid mostly lower world stock markets Tuesday is also helping support gold. A slumping U.S. dollar index also continues to drive buying interest to the raw commodity sector, including the precious metals. June Comex gold was last up $2.80 at $1,298.60 an ounce. July Comex silver was last down $0.107 at $17.575 an ounce.



News reports said Monday’s price action saw the largest daily money inflow to the gold ETF, SPDR Gold Trust, in five years.

It’s a risk-off day in the marketplace Tuesday. Most world stock markets are under pressure after some weak manufacturing data coming out of China, the world’s second-largest economy. The Caixin purchasing managers’ index (PMI) came in a 49.4 in April from 49.7 in March. A reading below 50.0 suggests contraction in the sector. April marked the 14th  month in a row of a number below 50.0. U.S. stock indexes are pointed toward lower openings when the day sessions begin in New York.

via Kitco

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.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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