Gold gets another boost as US risks strengthen case for havens

Gold steadied after posting its longest rally in three months as investors weighed growing political tensions in the U.S., which reinforced demand for havens. Palladium notched a fresh record.

Bullion, which has already benefited from central bank easing, slowing growth and the trade war, gained an additional support after an announcement that the U.S. House of Representatives is opening a formal impeachment inquiry of President Donald Trump.

Gold 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 lost 0.2% to $1,528.78 an ounce by 11:57 a.m. in London. Prices capped four days of gains on Tuesday, the longest run since June 25, and the precious metal is 19% higher this year. Spot palladium rose to an all-time high of $1,677.45 an ounce, before paring gains.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 26770.20 0.96%
S&P 500 2986.20 0.39%
NASDAQ 8089.54 0.83%
TSX 16377.12 0.30%
TSX-V 542.43 0.00%

Resource Commodities

Name Last Change
Gold 1490.25 0.18%
Silver 17.53 0.06%
Copper 2.63 2.625
Platinum 901.00 0.67%
Oil 53.78 0.28%
Natural Gas 2.32
Uranium 24.88 0.00%