News Commodity Market News

Gold inches up on safe haven buying


COMEX gold trades marginally higher near $1195/oz as global risk aversion has pushed safe haven assets higher.

US and global equity markets witnessed sharp sell-off fuelling demand for safe haven assets. US DJIA index fell 3.2% yesterday marking its biggest one day percentage decline since Feb. Asian equity markets are trading lower reflecting losses in US market.

Weighing on market sentiment are concerns about global economy amid trade war, rising interest rates and weakness in emerging market economies

Gold, Japanese Yen and bond edged up on safe haven buying. Yen rose 0.4% to trade near 112.2 against the US dollar. The US 10-year bond yield fell from recent high of 3.26% to 3.15% today as bond edged up.

Increased safe haven allure also led to some ETF inflows. Gold holdings with SPDR ETF rose by 8.8 tonnes to 738.994 tonnes, first increase since July.

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