Gold Recovers After the Wall Street Turbulence
The slide of the American stock market during the month of October encouraged the recovery of gold prices.
The monthly increase for the yellow metal is 3.3%, while gold futures today see growth of 0.3% (+ 0.6% over the week). If, as seems likely, this week will end with the plus sign for gold quotations, ringing the fourth in a row, gold will have achieved the longest weekly increments since last January.
Currently, the price of the ounce is at 1,234.96.
The inversion of the trend, in conjunction with the worst sessions for the S & P 500 of 9-10 October, has brought the shelter par excellence to the highest since mid-July. The rebound of the markets, which yesterday saw the growth of the 1.86% benchmark have left the land previously gained by gold intact. According to Robin Bhar, an analyst at Societe Generale, gold at this stage of “impressive performance” is once again acting as a shelter asset.
“We had a fair rally in gold after the stock market crash, people are more worried about the current geopolitical risks and gold is considered more favorable now than in the past,” Yuichi Ikemizu, director, told Cnbc of the Tokyo branch of the ICBC Standard Bank.
“The gold market has entered a new trading zone at 1,228 – $ 1,238, with investors’ mood swings on the S & P to steer the ship,” said Stephen Innes, Apac sales manager at OANDA in Singapore, “the short-term narrative is poised between a more restrictive Fed and a weaker stock market. “