Gold hits six-month high
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BENGALURU: Gold rose to its highest in six months on Wednesday as worries over US political uncertainty, aggravated by a partial government shutdown, and slowing global economic growth drove investors towards the safe-haven metal.
Spot gold climbed 0.3 per cent to $1,272 per ounce as at 1212 GMT. It touched $1,274.68 in early trade, its highest since June 20. US gold futures, meanwhile, were up 0.3pc at $1,275.20 per ounce.
“There is some safe haven buying at this point in time because of the partial (US government) shutdown. The dollar against the Japanese yen and Swiss franc has lost quite a bit of value,” said Afshin Nabavi, Senior Vice President, MKS SA.
The US Senate has been unable to break a deadlock over Trump’s demand for more funds for a wall on the border with Mexico, and a senior official said the shutdown could continue until Jan 3.
With geopolitical uncertainty, investor interest in gold could push prices up to as much as $1,280-$1,300 in the coming year, Nabavi said.
Spot gold is up about 4.1pc for the month thus far, putting it on track to register its best December in about 10 years.
Among other metals, silver gained 0.6pc to $14.82 per ounce, while platinum was up 1.6pc at $795.20. Palladium was up 0.7pc to $1,255.24 per ounce.
Published in Dawn, December 27th, 2018
