Gold soars on Hong Kong unrest, Argentina peso rout

Tue, 2019-08-13 23:46

BENGALURU: Gold hit a more than six-year high on Tuesday as
unrest in Hong Kong and a rout in the Argentine peso drove
investors already spooked by the US-China trade war into havens
such as bullion at the expense of riskier assets such as
Spot gold was up 1 percent at $1,525.99 per ounce hit a high of
$1,534.31 — its highest level since April 2013.
US gold futures was up by 1.3 percent to $1,537 an ounce.
“Bond yields and equities are down which are the main reason for
gold to be higher. There is a bit of safe-haven (interest),” ABN
Amro analyst Georgette Boele said. “People are nervous about Hong
Kong again.”


Share markets slid for a third day on Tuesday as investors were
spooked by fears of a drawn-out global trade war, the Hong Kong
protests and a crash in the peso.
In Hong Kong, pro-democracy protesters on Monday shut down the
city’s airport, the world’s busiest air cargo hub.
Elsewhere, Argentina’s peso collapsed on Monday, losing roughly
15 percent of its value against dollar after crumbling to an
all-time low.
Fears of a possible return to interventionist policies of the
previous government have gripped the Argentine market since
market-friendly President Mauricio Macri lost a primary election by
a bigger-than-expected margin.
The yen rose to a seven-month high against the dollar in the
previous session, while US 30-year bond yields extended Monday’s
losses to slip to their lowest since July 2016.

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Source: FS – All-News-Economy
Gold soars on Hong Kong unrest, Argentina peso rout