📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Gold prices slide from near record highs as stock markets rebound

Published 06/08/2024, 07:02
© Reuters.
XAU/USD
-
GC
-
HG
-
SI
-
PL
-
MCU
-

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.

Spot gold fell 0.3% to $2,402.57 an ounce, while gold futures 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. 

Platinum futures steadied at $918.85 an ounce, while silver futures 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 copper futures on the London Metal Exchange fell 0.6% to $8,806.50 a tonne, while one-month copper futures 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 trade and inflation data due later in the week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.