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Precious Metals

Gold extends gains even as Asian shares bounce back

Gold bars

Gold rose for a seventh straight session on Thursday after touching its highest in more than two years in the previous session as investors are still seeking safe-haven assets even as stock markets bounced back in Asian trade.

Asian equity markets crept higher on Thursday after upbeat U.S. economic data took some of the sting out of the latest Brexit scare, while the Australian dollar slipped as the country’s triple A credit rating came under threat. Wall Street got a boost from Institute for Supply Management data showing U.S. service sector activity hit a seven-month high in June as new orders surged and companies hired more workers.

Spot gold, which touched its highest since March 2014 at $1,374.91 (£1,061.67) on Wednesday, was trading up 0.3 per cent at $1,367.45 (£1,055.96) an ounce by 0402 GMT. U.S. gold was up 0.2 per cent at $1,369.70 (£1,057.70).

William Wong, assistant head of dealing for Wing Fung’s precious metals desk, said, “Everyone is waiting for the U.S. non-farm payroll data for June due on Friday. Hence, not many people are trading and hence prices are stable”.

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Paul

The author Paul