Gold falls near 4-month lows on higher risk appetite

2019-04-17 15:41:27 GMT (Economies.com)
Gold falls near 4-month lows on higher risk appetite

Gold prices fell slightly in the European market on Wednesday to continue losses for the fifth day in a row, near its lowest level in four months recorded earlier in yesterday's trading, which comes due to the pressures from the rebound of investors' risk appetite, while their focus shifted to high-yielding assets.

 

As of 10:05 GMT, Gold prices fell by 0.1% to trade at $1,275.30 per ounce from the opening level of $1,276.66, with the highest level at $1,279.76 and a low of $1,274.61.

 

Yesterday, gold prices lost 0.8%, the fourth consecutive daily loss, and posted a four-month low of $1,272.97 an ounce.

 

The main factors in the recent fall of gold prices are the high-risk appetite of investors and their focus on buying high-yielding assets, which is currently reflected in the rise of most global equity markets.

 

Investors' risk appetite rose on strong signs of progress in the US-China trade talks, as the world's two biggest economies are approaching a comprehensive trade agreement, with a strong start of the corporate earnings season on Wall Street.

 

Concerns about the slowdown in the global economy also declined as China's positive economic data continued to be released, as today's Chinese data showed the growth of the world's second-largest economy was better than forecast during the first quarter. as the Chinese industrial production jumped in March to its highest level since 2014.

 

With investors' focus shifting to high-yielding asset markets, investor interest for the precious metal and the financial institutions fell, as holdings on the largest gold-backed investment fund fell yesterday to a six-month low.

 

Gold holdings on the SPDR Gold Trust Fund The world's (largest gold-backed fund) fell yesterday by 1.76 metric tons, the second consecutive daily decline, bringing the total to 752.27 metric tons, the lowest level since 24 October 2018.

 
 
 
  Symbol Last Change Chg.%
1.1140
0.0042
0.3789%
1.2289
0.0135
1.1107%
17.418
0.314
1.834%
53.880
-0.920
1.679%
59.10
-0.82
1.37%
1526.175
13.910
0.920%
 
 
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