Gold & Silver

Gold jumps to six-year high on uncertainty in global markets

Bloomberg Singapore | Updated on June 25, 2019 Published on June 25, 2019

The yellow metal has surged to the highest level in six years as fresh US sanctions on Iran added to uncertainty in global markets, with semi-official Iranian Students News Agency reporting that the diplomatic path with Washington is closed forever, citing Foreign Ministry spokesman Abbas Mousavi.

Investors are also looking to the G-20 summit this weekend where Presidents Donald Trump and Xi Jinping are scheduled to meet to discuss trade, although US officials are downplaying expectations, insisting America was not prepared to compromise on demands for meaningful Chinese economic reforms. Another key event on traders watch list is Federal Reserve Chairman Jerome Powells speech in New York later on Tuesday, which will touch on monetary policy.

Bullions been on a tear this month as the dollar weakened after the Fed opened the door to an interest rate cut and other central banks also pivoted to a more dovish stance. Investors are taking note -- pouring into exchange-traded funds backed by the precious metal and boosting net long positions in US gold futures and options. Morgan Stanley said gold is its top commodity pick on a six-month view as the uncertain macroeconomic outlook adds to its appeal.

The global capital markets mood is shaky due to the fear of the unknowns and its this uncertainty that will continue to provide the jet fuel for an already high-octane gold market, Stephen Innes, managing partner at Vanguard Markets Pte, said in a note.

A significant withdrawal by investors from the US dollar, which intensified after last weeks Fed policy meeting, further adds to the glimmering gold market appeal, Innes added.

Spot gold climbed as much as 1.4% to $1,439.21, the highest since May 2013, and traded at $1,436.33 at 12:46 p.m. in Singapore. A gauge of the U.S. dollar hit a three-month low.

In other precious metals, silver rose 0.3%, platinum lost 0.1%, and palladium fell 0.2%.

Published on June 25, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.