Gold retreats under $1,500 amid risk appetite

Monday, 19. August 2019 11:45

Waning demand for safe havens pressured spot prices of gold and silver on Monday as markets were bracing for a race in stimulus among the world's central banks. Since the United States Federal Reserve lowered interest rates last month for the first time in over a decade, bets on a stronger response from policymakers in other countries increased. Bond purchases and easing bias normally buoy investments in stocks and make debt securities less appealing. The two precious metals have recently benefited amid the recent turmoil in trading and weak macro data from the US, Europe, Japan and China.

The equity selloff and the drop in benchmark yields to the lowest levels ever or in several years were reversed last week with signs of another truce in the trade war between the two largest economies.

Gold slipped below the psychological mark of $1,500 per ounce and traded 0.91% lower at 11:44 am CET to change hands for $1,499.61. Last week it touched $1,535.06, the highest level in over six years. Silver weakened 1.11% to $16.92 and platinum was down 0.56% at $844.64 for one troy ounce. Palladium diverged, rising by a mere 0.26% to $1,455.34 per ounce.

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Breaking the News / IT