The spot gold price inched higher during Asian morning trading hours on Tuesday September 26 as investors opted for haven assets amid heightened geopolitical tensions.
The spot gold price was quoted at $1,311.75-1,312.05 per oz as of 04:27 BST, up $3.75 on the previous session’s close. Trade has ranged from $1,308.00-1,312.10 so far today.
- “Iranian sabre rattling, North Korean accusations and the Kurdish independence referendum threatening to add even more instability to the Middle East saw investors heading for the gold safe haven trade, shrugging off a stronger US dollar in general overnight,” Jeffrey Halley, senior market analyst at Oanda, said.
- Geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US president Donald Trump’s recent remarks are a declaration of war, and that Pyongyang has the right to take countermeasures, including shooting down US aircraft.
- Concerns also arose on straining relations between the USA and Iran after the latter claimed it successfully launched a missile and over oil supply disruptions after Turkey threatened to close the route for Kurdish shipments in retaliation for holding their independence vote.
Silver, PGMs
- In the other precious metals, the spot silver price rose $0.09 to $17.195-17.215 per oz. Platinum increased $7 to $942-947 per oz and palladium also gained $7 to $916-921 per oz.
- On the Shanghai Futures Exchange, gold for December delivery was recently at 281.85 yuan ($42.59) per gram, and the December silver was at 3,929 yuan per kg.
Currency moves and data releases
- The dollar index dipped 0.03% to 92.57 as of 04:50 BST.
- In other commodities, the Brent crude oil spot price surged 0.63% to $59.46 per barrel as of 04:54 BST. The price had surged as high as $59.48 earlier in the day – the highest since July 2015 – on concerns over supply disruptions and optimism that members of the Organisation of the Petroleum Exporting Countries (Opec) and other major producers will extend their output-cut agreement beyond the March 2018.
- In equities, the Shanghai Composite rose 0.07% to 3,343.90.
- In data on Monday, the German Ifo business climate came in at 115.2, a miss from the expected 116. China’s CB leading index stood at 1.1%, above the previous reading of 1.0%.
- The economic agenda is light today with mainly the CB consumer confidence and new home sales from the USA of note.
- In addition, US Federal Open Market Committee chairwoman Janet Yellen is due to speak at the National Assn for Business Economics Annual Meeting in Cleveland.
The post BULLION LATEST: Gold gains on heightened geopolitical tensions appeared first on The Bullion Desk.
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Source: Bullion Desk News
