Gold prices held steady on Tuesday near last session's 2-1/2-month high as risk-averse investors sought refuge in the metal amid rising political tensions and economic uncertainty. Spot gold was little changed at $1,226.71 an ounce at 0707 GMT. It touched $1,233.26 on Monday, its highest since July 26, as global stocks slid on rising tensions between Western powers and Saudi Arabia and concerns over the pace of global economic growth. Asian stocks rose modestly on Tuesday, gaining a firmer footing after a week of heavy losses.
US gold futures were flat at $1,230.40 an ounce.
"While the sell-off in stocks rekindled some demand, there were other key factors in play. With escalating trade tensions, concerns over slowing global growth, geopolitical tensions and US mid-term election jitters in the mix, gold has a chance to shine," said Lukman Otunuga, Research Analyst for FXTM. Spot gold may fall into a range of $1,208-$1,217 per ounce, as it faces a strong resistance at $1,235, according to Reuters technical analyst Wang Tao.
Comments
Comments are closed.