2 months ago
Commodities

Gold Inches up as Investors Turn Away From Riskier Equities

Investing.com - Gold prices rose for a fifth-straight day as a decline in equities and worry over slowing economic growth

Investing.com - Gold prices rose for a fifth-straight day as a decline in equities and worry over slowing economic growth and U.S. political tensions increased investor appetite for risk-averse assets.

Comex gold futures for February delivery rose 0.4% to $1,286.60 a troy ounce as of 8:52 AM ET (13:52 GMT).

The precious metal was pushed higher after factory activity in China contracted for the first time in 19 months, as the U.S-China trade dispute and slowing economic growth has weighed on manufacturers. Equities futures pointed to a fall in U.S. stocks, as Wall Street posted one of its worst years in a decade in 2018.

Meanwhile, U.S. political tensions also weighed, with the government partially shut down for the 12th day. Congress is expected to reconvene on Wednesday, but there are no clear signs that the shutdown will end anytime soon.

The price of bullion rose despite the greenback rising. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.5% to 96.22.

The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Other metals were lower on the Comex, with silver futures falling 0.5% to $15.463 a troy ounce. Among other precious metals, platinum futures decreased 1% to $792.60, while palladium futures dipped 0.2% to $1,194.70 an ounce.

Copper futures were down 0.9% to $2.606 a pound.