Gold price SOARS to SIX-MONTH high on weaker US dollar

Thursday, January 3, 2019
By Paul Martin

GOLD prices soared for the third day in the row to a six-month high as a weakened US dollar boosted the yellow metal.

Thu, Jan 3, 2019

The price of gold was pushed higher as investors turned to safe-haven buying after being spooked by fears of a global economic slowdown. Anxieties over the state of worldwide finances were exacerbated today after Apple issued a rare revenue warning, blaming slowing sales in China where the economy has been dented by an ongoing trade war with the United States. Spot gold reached as high as $1,292.32 per ounce earlier today, a level not seen since June 15, 2018. As of just after 12.00pm GMT, the price of spot gold was up 0.6 percent to $1,288.25.

Carsten Menke, an analyst at Julius Baer said: “Fears of an economic slowdown are one source of the equity market volatility, thus contributing to the covering of short positions in the futures market and investors’ renewed interest in gold.”

Gold also hit multi-month highs in euro and sterling terms.

Gold peaked at £1,031.89 during the day, its highest since September 8, 2017.

While it peaked at 1,137.47 euros, the highest since June 9, 2017.

Apple rattled global markets today with its sales warning, sparking a sea of red across shares worldwide.

Issuing its first revenue warning in almost 12 years, Apple forecast $84billion in revenue for its fiscal first quarter.

The Cupertino, California-based company originally forecast revenue of between $89billion and $93billion.

European and Asian markets reacted badly to the warning, with prices falling across the board.

Amit Kumar Gupta, portfolio management services head at Adroit Financial Services in New Delhi, said: “Volatile global markets always add to the charm of buying gold.

“There is also a major tailwind for gold early in the year, due to buying ahead of Lunar New Year holidays in much of the world.”

Among other precious metals, palladium gained 0.2 percent to $1,257.60 per ounce.

Silver was up about 0.5 percent at $15.58 an ounce.

Platinum shed 0.1 percent to $793.80 per ounce.

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