Gold is punching higher as risk fades

Oct 2 (Reuters) – Gold prices rose on Tuesday as risk appetite faded Asian stocks fell, with MSCI’s broadest index of Asia-Pacific shares outside Japan declining 1 percent after a steady start, as cautious views on the global economy curbed risk sentiment.

“Prices have hovered around $1,190/oz and there is some demand from speculators and physical buyers at this level,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

“Gold was assisted by a largely stable U.S. dollar index (on Tuesday),” said National Australia Bank economist John Sharma said.

Gold has fallen about 13 percent from its April high, largely because of the stronger dollar, which has been boosted by a vibrant U.S. economy and fears of a global trade war.

“I don’t see the U.S. dollar doing much ahead of Friday’s non-farm payroll data. I look for that key print to drive the pace of the U.S. Federal Reserve repricing rates higher, which I think will boost the dollar’s appeal,” said Stephen Innes, APAC trading head at OANDA in Singapore.

Reuters

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes