Gold Rises as Equity Retreat Spurs Demand for Haven Assets

Precious metal gains with US Treasuries.

by Ranjeetha Pakiam and Eddie van der Walt (Bloomberg)
Mine Web

Gold rose from its lowest close this month as a drop in equities spurred demand for a haven.

The metal gained along with US Treasuries, another haven asset, as European stocks fell from a three-week high. The International Monetary Fund is due to update its projections for world growth on Tuesday and managing director Christine Lagarde warned last week that estimates may be cut.

“It is one of those perfect risk-off days when you see more flow for safe haven and the precious metal is shining in that space,” Naeem Aslam, the chief market analyst at Think Markets UK, said by e-mail.

Bullion for immediate delivery added 0.3% at $1 332.45 an ounce by 11:03am in London, according to Bloomberg generic pricing. Prices dropped 0.6% on Monday to settle at $1 328.85, the lowest since June 30.

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