13/09/2017 11:26 AST

Gold fell to its lowest in more than a week on Tuesday as easing concerns over North Korea’s nuclear ambitions and the impact of Hurricane Irma tempered demand for the metal as a haven from risk while the dollar strengthened.

World stocks hit record highs for a second straight day on Tuesday as investors opted for nominally higher risk-assets over havens such as gold, bonds and the Japanese yen.

Spot gold hit its lowest since September 1 at $1,322.15 an ounce in early trade and was at $1,324.17 at 1120 GMT, down 0.2 per cent. On Monday it slid 1.4 per cent in its biggest one-day drop in two months.

“The North Korea story has had (an impact) on the price of gold, but these geopolitical events tend to be quite limited in time,” Natixis analyst Bernard Dahdah said. “The market accommodates surprisingly quickly when things calm down.”

“It was the weakness of the dollar that was really driving gold, and the tensions with North Korea,” he said. “The rate at which the dollar can still depreciate is slowing down.”

US gold futures for December delivery were down $7.50 an ounce at $1,328.20. The dollar was up 0.1 per cent, extending the previous session’s bounce from last week’s 2-1/2 year low. European stocks rose on Tuesday, and world shares hit another record high. “North Korean inaction over the weekend took some heat out of the crisis, with investors becoming a little bit more comfortable,” ANZ said in a note. “Hurricane Irma also caused less damage than original feared.”

“The market is likely to turn its attention to the Fed, with speakers now in blackout mode ahead of its policy meeting next week.” The Federal Reserve has raised US interest rates twice this year in response to upbeat growth data and falling unemployment, but persistently soft inflation data has tempered expectations for another hike in December.

Gold is highly sensitive to rising US interest rates, as they increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Shares, rose 1.2 tonnes on Monday, data from the fund showed, after three days of outflows.

Among other precious metals, silver was down 0.2 per cent at $17.77 an ounce after hitting its lowest since September 1 at $17.67.

Platinum was down 0.7 per cent at $982.70, while palladium was 0.8 per cent higher at $939.80 an ounce.


Ticker Price Volume
QNBK 123.30 103,897
MMG 0.00 0
ARNB 24.06 13,626
SABIC 100.87 2,504,855
BURUJ 34.50 110,831
CHEMANOL 7.11 932,192
NAMA 21.93 1,439,725
(In US Dollar) Change Change(%)
Gold 1,310.70 3.60 0.28
Silver 17.27 0.11 0.61
Platinum 951.00 -9.00 -0.94
Palladium 901.00 -27.00 -2.91
Bullish copper bets go wrong as warnings of ‘hype’ ignored


Hedge funds ignored the warnings about the red-hot copper market, and it may have cost them. After amassing their largest holdings ever, money managers saw the value of the metal plunge last week, h

Gulf Times

Gold retreats from 1-year high as dollar gains ground


Gold fell early on Monday after hitting its highest in over a year in the previous session, as the dollar recovered from last week’s lows and as lack of geopolitical developments dented safe-haven ap


Gold at highest in a year as rate hike expectations recede


Gold prices rose to their highest in more than a year on Friday as weak economic data reduced expectations of another interest rate increase in the United States this year, US bond yields fell and th

The Peninsula

Gold succumbs to profit-taking after touching one-year high


Gold eased on Tuesday as investors booked profits after the previous session’s rise to a one-year high, though prices remain underpinned by safe-haven demand because of continued concern over North K


Gold surges to 1-year high on renewed North Korea tensions


Gold prices spiked more than one per cent on Monday to its highest level in a year as risk averse investors sought refuge in the safe haven metal amid geopolitical tensions triggered by North Korea,