(Bloomberg) -- Gold steadied after posting its longest rally in three months as investors weighed growing geopolitical risks in the U.S., which reinforced demand for havens that have already benefited from central bank easing, slowing growth and the trade war. Palladium notched a fresh record.
Stocks in Asia fell and Treasuries rose as Speaker Nancy Pelosi said the House is opening a formal impeachment inquiry of President Donald Trump, following revelations he pushed Ukraine’s government to investigate Joe Biden. Adding to tensions were uncertainty surrounding planned high-level trade talks in October after Trump, in a speech at the United Nations Tuesday, accused China of currency manipulation, theft of intellectual property, and dumping.
Bullion is heading for a fifth monthly advance as the Federal Reserve and central banks globally cut interest rates to prop up economies hurt by the prolonged trade war. Weakening U.S. consumer confidence also dented sentiment. The possibility Trump will face impeachment is adding to the raft of concerns weighing on markets, even as the president said he would release a transcript on Wednesday of his phone call with the Ukrainian leader.
“The move in gold looks convincing enough to warrant some attention as it’s unlikely the political storm clouds over Washington are about to dissipate any time soon,” Stephen Innes, Asia-Pacific market strategist at AxiTrader, said in a note. This “might continue to weigh on equity market sentiment, possibly send U.S. yields lower and could undermine confidence in the U.S. dollar.”
Spot gold was little changed at $1,530.92 an ounce at 10:09 a.m. in Singapore. Prices capped four days of gains on Tuesday, the longest run since June 25. The 10-year Treasury yield was close to a two-week low, while a gauge of the greenback steadied after losing 0.2% Tuesday. Spot palladium climbed to an all-time high of $1,677.45 an ounce.
