Economy

Gold edges up, hovers near 1-year high on haven demand

Gold edges up, hovers near 1-year high on haven demand”

The broader dollar index was down 0.3 percent at 92.56 and not far away from a 2-1/2-year low below 92 last week.

A potential standoff over the USA federal debt ceiling has raised alarm bells among investors who fear a repeat of 2011 when a prolonged showdown over increasing the borrowing limit and subsequent downgrade of US credit quality led to slump in the S&P 500 stock index.

Bank stocks led the slide as bond yields slumped. "In that case, it would be prudent to raise the federal funds rate more gradually". In a statement, the European Central Bank said it could extend its stimulus in terms of its size or duration if the outlook less favorable.

The dollar was subdued on Thursday and the euro stood firm ahead of the European Central Bank meeting where President Mario Draghi is expected to start laying the groundwork to withdraw monetary stimulus. The rise in the currency's exchange rate is complicating life for the central bank.

The latest flare-up sent investors fleeing for safe assets, with the yen climbing to 109.50 to the dollar and gold up 0.9 per cent, pushing towards US$1,340 and levels not seen since November. Ahead of his briefing, the euro was up 0.5 percent at $1.1970.

"The market is likely to continue focusing on geopolitical tensions, but it will start to shift focus to the Federal Reserve meeting in September, looking for details on reducing the balance sheet", Samson Li, an analyst with Thomson Reuters-owned metals consultancy GFMS said.

But a majority of analysts project appetite for safe-haven assets to wane in a while.

Losses in gold, however, remained limited as expectations on additional US rate increases faded, following comments from Federal Reserve officials urging the USA central bank to consider shelving its plan to hike rates later this year amid a slowdown in inflation. The unexpected departure of Fischer, a widely respected economist, adds to a leadership vacuum at the top of the Fed as it navigates a hard path.

Each U.S. index had been on a multiday upward trend.

"North Korea seems to be what gets the biggest reaction, at least over the last month or two", Aaron Jett, vice president for global equity research at Bel Air Investment Advisors in Los Angeles, told Reuters.

The Dow Jones industrial average tumbled 234.25 points, or 1.07 percent, to 21,753.31.

The Nasdaq Composite was up 10.73 points, or 0.17 percent, at 6,386.30. Energy companies climbed the most as the price of crude oil rose.

U.S. West Texas Intermediate (WTI) crude futures ticked up 0.2 per cent to trade at $47.38 per barrel as U.S. demand recovered after being hit by reduced refinery activity since Harvey made landfall on August 25.



Like this

loading...
loading...

Latest


07 September 2017
Should You Buy First Solar, Inc. (NASDAQ:FSLR) On Current Analyst Views?
Baird restated a "hold" rating and set a $50.00 price target on shares of First Solar in a report on Friday, September 1st. On Wednesday, May 3 Schumaker Bryan Robert sold $96,145 worth of First Solar , Inc. (NASDAQ:FSLR) or 7.13 million shares.

07 September 2017
Everence Capital Management Inc. Holds Stake in Paychex, Inc. (PAYX)
Paychex, Inc . (NASDAQ: PAYX ) is -3.07% below its 200-day moving average, providing a measure of resistance for long positions. The volume of 1.1 Million shares climbed down over an trading activity of 2.24 Million shares. $615,269 worth of Paychex, Inc .

07 September 2017
Labour widens lead over National in new poll
Duncan said the Greens were "perilously close" to the 5 percent voting threshold below which you do not get a seat in parliament. National has taken a dip in the latest 1 NEWS Colmar Brunton Poll, trailing four points behind Labour at 39 per cent.

07 September 2017
Lincoln National Corp (NYSE:LNC) Institutional Investor Sentiment
Poplar Forest Capital Llc sold 245,801 shares as the company's stock declined 8.83% while stock markets rallied. (NASDAQ:AMGN). The stock of Lincoln National Corporation (NYSE:LNC) has "Neutral" rating given on Friday, October 7 by Credit Suisse.

07 September 2017
Rockstar bringing LA Noire to PS4, Switch and Xbox One
Noire to PlayStation 4, Xbox One, HTC Vive, and Nintendo Switch. Noire original before shutting soon after its release. Noire: The VR Case Files for the HTC Vive headset.

07 September 2017
And the next Bachelor is... Arie Luyendyk Jr
Fans will recognize Luyendyk from Season 8 of The Bachelorette , when he earned the nickname, "The Kissing Bandit". According to #Arie Luyendyk Jr., he is more than ready to find the love of his life and settle down.

07 September 2017
Bristol-Myers Squibb Company (BMY) Shares Sold by Smith Salley & Associates
Traders are a little more bearish on shares of Bristol-Myers Squibb Company if you evaluate the increase in short interest. British Columbia Investment Management Corp bought 177,111 shares as the company's stock rose 5.06% with the market.

07 September 2017
Prestige Brand Holdings, Inc. (NYSE:PBH) Experiences Heavier than Usual Trading Volume
The stock of Mattel, Inc. (NASDAQ:MAT) has "Buy" rating given on Thursday, January 26 by Monness Crespi & Hardt. According to TipRanks.com , Gere is a 3-star analyst with an average return of 2.0% and a 46.8% success rate.

07 September 2017
No comment from HTC on Google deal; shares plunge on sales data
HTC's statement indicated that the company is still positive about its overall smartphone shipments for the third quarter of 2017. Some market participants expect sales to recover as Google's Pixel 2 smartphone, which HTC builds, is on track for release.

07 September 2017
CBS, WFAN cooperating following Craig Carton arrest
The former Jets and Bengals quarterback vowed that the show will endure, despite his missing "point guard". He and another man allegedly created a phony ticket selling business that bilked investors out of millions.