NEW YORK (Scrap Register): “Gloomy” global equities have propelled gold to three-month highs as the precious metal acts like a safe haven again, said George Gero, managing director with RBC Wealth Management.
Some traders are likely being forced to cover some short positions, he continues. The fallout of Saudi problems, Italy budget headlines, trade wars and tariffs all weigh on stocks and [are] moving gold, which until recently was losing tonnage in ETFs [exchange-traded funds].
Asset allocators now forced to look at gold as the usual additional alternative to hedge volatility in stocks.
The most active December gold contract on the COMEX division of the New York Mercantile Exchange advanced by $12.20 to settle at $1,236.80 an ounce on Tuesday. That was the highest finish for a most-active contract since July 16.
The Dow Jones Industrial Average futures were around 450 points lower ahead of the open on Wall Street.