BENGALURU: Gold jumped 1 per cent to a more than three-month peak on Tuesday as investors took cover from a slide in global stocks and rising political and economic uncertainty, including concerns over Italy’s spending plans.
Palladium also soared to a record high on the back of increasing tensions between the United States and top producer Russia, with additional support from expected demand from the Chinese automotive sector.
Spot gold was up 1.1pc at $1,235.03 an ounce at 1132 GMT, having touched its highest since July 17 at $1,236.58.
US gold futures rose 1.1pc to $1,238.20 as momentum proved strong enough to counter the rising dollar, which touched a two-month high.
“Rising risk aversion, falling stock markets and continued concerns regarding Italy are supporting prices,” said Commerzbank analyst Carsten Fritsch.
Holdings at the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.28pc to 747.88 tonnes on Monday.
Meanwhile, palladium jumped about 1pc to $1,131.72 an ounce after marking a record high of $1,143.
Among other precious metals, silver rose 0.7pc to $14.71 while platinum was up 0.8pc at $826.20.
Published in Dawn, October 24th, 2018
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