Yahoo Finance Gold Prices Gain In Asia On Demand From India, China
Investing.com - Gold prices gained in Asia on Tuesday with physical demand from India during the festival season and the other top importer China as markets gear up after a week-long holiday last week.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose 0.31% to $1,289.05 a troy ounce.
Overnight, gold prices rose on Monday supported by a dip in the dollar as an uptick in geopolitical uncertainty increased demand for safe-haven gold but growing expectations that the Federal Reserve will hikes rates for the third time this year capped gains.
Gold made a strong start to the week amid renewed geopolitical uncertainty as President Donald Trump’s tweets over the weekend, sparked fears that the president is leaning toward military action against North Korea.
President Trump said the United States has been “unsuccessfully dealing” with North Korea for 25 years, insisting that “only one thing will work” to curb the isolated nation’s efforts to further develop nuclear weapons.
Analysts have been quick to downplay the strong gains in gold prices, insisting that the outlook for the precious metal remains bearish amid expectations that a higher interest rate environment will curb demand for non-yielding bullion.
Net bullish bets on gold fell to 203.9, according to a report from the Commodity Futures Trading Commission (CFTC) on Friday.
Gold is sensitive to moves higher in both bond yields – A rising interest rate environment lifts the opportunity cost of holding non-yielding assets such as bullion.
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