Yahoo Finance Gold Prices Down Amid Strong Equity Markets
Investing.com - Gold prices fell on Monday in Asia as Asian equities traded higher.
The benchmark Gold Futures contract on New York Mercantile Exchange’s Comex dropped 0.3% to $1,519.65 by 1:20 AM ET (05:20 GMT).
The fall in gold prices came as Asian stock markets recovered today. Hong Kong’s Hang Seng Index jumped 2%, while Chinese stocks also gained more than 1.7%.
Wednesday’s release of the Fed meeting minutes for July, along with the Thursday-through-Saturday Jackson Hole retreat, and Chairman Jay Powell’s speech on Friday are expected to dictate gold price movement this week.
Traders will also keep an eye out on developments on the Sino-U.S. trade front, as U.S. President Donald Trump reiterated on the weekend that he is not ready to make a trade deal with China, hinting that he wants China to solve the problems in Hong Kong in a humanely way first.
Despite the losses today, analysts said safe-haven demand for gold remained strong.
“Precious metals may have benefited from equity angst and recession fears this week, but the lack of bad news is spurring some consolidation,” TD Securities said in a note on gold.
Since the start of August, gold has gained over 6%, or about $90, on heightened trade tensions and sustained buying by central banks responding to a slew of disappointing economic data globally.
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