Gold gains on trade concerns and silver breaks $18/oz mark

US home price growth cools to slowest in seven years

Spot gold rose 0.3 per cent to $1,531.06 per ounce. Photograph: Michael Dalder

Spot gold rose 0.3 per cent to $1,531.06 per ounce. Photograph: Michael Dalder

 

Gold rose on Tuesday as investors sought cover from global uncertainties including the US-China trade dispute, while silver latched on to bullion’s rally to breach the $18 an ounce mark for the first time in nearly two years.

Spot gold rose 0.3 per cent to $1,531.06 per ounce just after lunch.

However, gold prices shed nearly $30 from a high of $1,554.56 it hit on Monday, a level last seen in April 2013, after US President Donald Trump said negotiations with China on the long-drawn tariff war have resumed.

Distant future

“We have a target of $1,586 for gold,” said Bart Melek, head of commodity strategies at TD Securities in Toronto. “There is a very good probability we will get there, not far in the distant future.”

Adding to uncertainty over the health of the global economy, data showed Germany’s economy contracted on weaker exports in the second quarter. Also, US home price growth cooled to its slowest in seven years.

Further supporting gold, the dollar eased, making the metal cheaper for investors holding other currencies. – Reuters