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PRECIOUS-Gold breaches $1,500/oz ceiling in beeline to safe havens

Published 07/08/2019, 19:22
Updated 07/08/2019, 19:22
© Reuters.  PRECIOUS-Gold breaches $1,500/oz ceiling in beeline to safe havens

© Reuters. PRECIOUS-Gold breaches $1,500/oz ceiling in beeline to safe havens

* Gold hits record high in various currencies
* Silver jumps over 4% to more than one-year high
* Palladium dips more than 1%

(Updates prices)
By Eileen Soreng
Aug 7 (Reuters) - Gold soared more than 2% on Wednesday to
breach the $1,500 ceiling for the first time in over six years
as investors rushed to safe havens, spooked by a host of
uncertainties including U.S.-China trade and a slowing global
economy.
Other precious metals, except palladium, latched on to
gold's rally, with silver breaking above the $17 an ounce mark
for the first time in more than a year.
"There are just numerous fundamental reasons behind gold's
strength and those are adding to today's extension to the upside
over $1,500. Clearly, safe-haven products have been the stars of
the show," said David Meger, director of metals trading at High
Ridge Futures.
Spot gold XAU= gained 2% to $1,503.56 per ounce at 2:04
p.m. EDT (1804) GMT, having touched $1,510, its highest since
April 2013.
U.S. gold futures GCcv1 climbed 2.4% to settle at
$1,519.60 an ounce.
Easing monetary policy by central banks, which have also
been constantly piling on to their bullion reserves, weak
economic readings globally and in addition, the ongoing trade
tensions, are fueling gold's run, Meger added.
The world's two largest economies have been locked in a
bitter trade tussle, which escalated last week when U.S.
President Donald Trump said he would impose additional tariffs
on Chinese goods. On Monday, China responded by allowing its currency to
weaken past the 7 per dollar mark, prompting Washington to label
Beijing a currency manipulator. Also fueling gold's rally was a slump in U.S. Treasury
yields and Wall Street, with the Dow Jones Industrial Average
tanking more than 300 points. "With volatility significantly higher and risk of correction
in equities markets growing after pretty nasty several days of
sell-offs, gold looks like it is attracting investors at a very
rapid rate," said Bart Melek, head of commodity strategies at TD
Securities in Toronto.
Spot gold has sprinted over 19% since touching this year's
low of $1,265.85 in May.

U.S. short-term interest rates futures rose on Wednesday, as
traders increased bets that the Federal Reserve would cut key
borrowing costs three more times by year-end. 'Gold fever' could be sustained by factors including "the
current stage of the economic cycle, the scarcity of safe-haven
assets and central bank purchases," analysts at Societe Generale
said in a note.
Gold denominated in the British pound XAUGBP=R , Japanese
yen XAUJPY=R , Australian dollar XAUAUD=R and Indian rupee
MAUc1 hit their highest on record.
Silver XAG= surged over 4% to $17.18 per ounce, its
highest since June 2018. Platinum XPT= jumped 2.3% to $866.57
an ounce, while palladium XPD= dipped 1.6% to $1,414.18.

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GRAPHIC-Gold priced in various currencies https://tmsnrt.rs/2Yva9Mr
GRAPHIC-Gold breaches above $1,500 https://tmsnrt.rs/2Yx31yX
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