Gold reaches its highest level in 6 years

Gold prices hit their highest level in more than six years yesterday, as investors shied away from riskier assets, due to anxiety surrounding protests in Hong Kong, and the collapse of the Argentine currency, amid fears of a global economic slowdown. 1515


Gold prices hit their highest level in more than six years yesterday as investors shied away from riskier assets due to anxiety surrounding protests in Hong Kong and a collapse of the Argentine currency amid fears of a global economic slowdown.

Spot gold rose 0.3% to $ 1515.56 an ounce, after hitting its highest level since April 2013 at $ 1518.03. Gold futures rose 0.6 percent to $ 1,526.90 an ounce.

Protests have shut down Hong Kong's airport, objecting to a bill allowing suspects to be handed over to China for trial, but it has expanded to include broader calls for democracy.

Fears of a possible return to interventionist policies in the Argentine market also dominated after President Mauricio Macri lost a margin beyond expectations in the presidential primaries.

These uncertainties, combined with fears of a protracted China-US trade war, have shaken financial markets and pushed investors into safe-haven assets.

Gold, along with the Japanese currency and US Treasuries, is seen as a relatively safe investment in times of political and financial uncertainty. The yen held near a seven-month high against the dollar.

As for other precious metals, silver rose 1.4% to $ 17.29 an ounce. It reached its highest level since February 2018 at $ 17.36.

Platinum rose 1% to $ 860.75 and Palladium gained 0.8% to $ 1,439.11 an ounce.

ref: emara