WASHINGTON: Gold is 6 per cent away from the record high of nearly US$4,400 an ounce it set three weeks ago, demonstrating the safe haven’s ability to rise above volatility created by US interest rate uncertainty, reported Sputnik/RIA Novosti.
In Wednesday’s Asian trading, the spot price of gold, which reflects global trades in gold bullion, hovered at just above US$4,130 an ounce — up 0.1 per cent on the day. Over a three-day period, however, the gain was about 4 per cent. At Tuesday’s standing, spot gold was just about US$150, or 6 per cent, below its all-time high of US$4,381 on October 20.
US gold futures for December delivery on New York’s Comex were at US$4,140 an ounce — up 0.5 per cent. Comex gold’s three-day gain was also around 4 per cent. It hit a record high of 4,398 on October 20.
This week’s rebound in gold comes after the spot price fell nearly 6.5 per cent over three prior weeks. Futures gave up about 5 per cent over the same period.
Analysts say the protracted US government shutdown has created economic uncertainty that led to a “data vacuum”, forcing investors to flock to safe-haven assets.
And while there was no certainty that the Federal Reserve would decide on another interest rate cut in December after back-to-back quarter percentage point reductions in September and October, there were enough odds to tilt the central central bank that way after the US government shutdown, analysts said. – BERNAMA-SPUTNIK/RIA NOVOSTI
