Gold prices slide from near record highs as stock markets rebound
2024.08.06 02:22
Investing.com– Gold prices fell from near record highs in Asian trade on Tuesday as a rebound in stock markets sapped some demand for safe havens, although fragile sentiment still kept the yellow metal relatively upbeat.
Gold had surged close to record highs on Monday, as a crash in global equity markets sent traders squarely into safe havens such as bullion and the yen. Increased expectations of a U.S. recession and interest rate cuts buoyed gold prices while denting the dollar.
Anticipation of Iran and Hamas’ retaliation against Israel for the killing of a Hamas leader in Tehran also kept safe haven demand elevated.
fell 0.3% to $2,402.57 an ounce, while expiring in December fell 0.1% to $2,443.0 an ounce by 01:50 ET (05:50 GMT). Spot prices had pushed as high as $2,460 an ounce earlier in the week.
Gold weakens as dollar steadies, stocks rebound
The yellow metal saw some weakness on Tuesday as the dollar rebounded from a near seven-month low.
A sharp rebound in equity markets also sapped safe haven demand for the yellow metal, as risk-driven assets benefited from a bout of bargain buying.
But gold still retained a bulk of its recent gains, as the prospect of lower interest rates also spurred flows into the yellow metal. Lower interest rates bode well for gold, given that they decrease the opportunity cost of investing in the metal.
Other precious metals benefited from this trade, but were nursing steep losses in recent sessions on relatively less safe haven appeal than gold.
steadied at $918.85 an ounce, while slid 0.7% to $27.020 an ounce.
Copper nurses steep losses amid recession fears
Among industrial metals, copper prices slid on Tuesday, seeing extended losses amid fears of a U.S. recession and uncertainty over China.
Benchmark on the London Metal Exchange fell 0.6% to $8,806.50 a tonne, while one-month fell nearly 1% to $3.9660 a pound.
Markets grew fearful of a U.S. recession following a string of underwhelming labor market readings, as well as signs of slowing manufacturing activity.
Weak manufacturing data from China added to these concerns, and battered copper with the prospect of slowing demand across the globe.
Focus this week is on more economic readings from China, particularly and data due later in the week.
