Gold soars on Hong Kong unrest, Argentina peso rout

Spot gold was up 1 percent at $1,525.99 per ounce hit a high of $1,534.31 — its highest level since April 2013. (REUTERS)
Updated 13 August 2019

Gold soars on Hong Kong unrest, Argentina peso rout

  • Spot gold was up 1 percent at $1,525.99 per ounce hit a high of $1,534.31 — its highest level since April 2013

BENGALURU: Gold hit a more than six-year high on Tuesday as unrest in Hong Kong and a rout in the Argentine peso drove investors already spooked by the US-China trade war into havens such as bullion at the expense of riskier assets such as stocks.
Spot gold was up 1 percent at $1,525.99 per ounce hit a high of $1,534.31 — its highest level since April 2013.
US gold futures was up by 1.3 percent to $1,537 an ounce.
“Bond yields and equities are down which are the main reason for gold to be higher. There is a bit of safe-haven (interest),” ABN Amro analyst Georgette Boele said. “People are nervous about Hong Kong again.”

 

Share markets slid for a third day on Tuesday as investors were spooked by fears of a drawn-out global trade war, the Hong Kong protests and a crash in the peso.
In Hong Kong, pro-democracy protesters on Monday shut down the city’s airport, the world’s busiest air cargo hub.
Elsewhere, Argentina’s peso collapsed on Monday, losing roughly 15 percent of its value against dollar after crumbling to an all-time low.
Fears of a possible return to interventionist policies of the previous government have gripped the Argentine market since market-friendly President Mauricio Macri lost a primary election by a bigger-than-expected margin.
The yen rose to a seven-month high against the dollar in the previous session, while US 30-year bond yields extended Monday’s losses to slip to their lowest since July 2016.

Decoder

Gold bullion, along with the Japanese yen and US Treasuries, are seen as a relatively safe investment in times of political and financial uncertainty.


Saudi Arabia: OPEC, allies coordinating to hold Saturday meeting

Updated 35 min 51 sec ago

Saudi Arabia: OPEC, allies coordinating to hold Saturday meeting

  • Russian energy ministry earlier confirmed the meeting

DUBAI: Saudi Arabia’s energy minister said on Friday that OPEC and its allies, a group known as OPEC+, were working to hold their oil output policy meeting on Saturday.

“The conditions right now warrant hopefully successful meetings. Coordination is under way to hold OPEC and OPEC+ meetings tomorrow afternoon,” Prince Abdulaziz bin Salman said.

The Russian energy ministry earlier similarly said a video conference of a group of leading oil producers, known as OPEC+, would be held on Saturday.

The producers known as OPEC+ previously agreed to cut supply by 9.7 million barrels per day (bpd) during May and June to prop up prices that collapsed due to the coronavirus crisis.

Cuts have been due to taper to 7.7 million bpd from July to December.