Gold Gains 1 Percent as Investors Seek Safe Haven

APMEX

10/15/2018 1:54:58 PM

Daily Gold & Silver Market Report – 10/15/2018

• Price of Gold reaches highest levels since July.
• European stocks hit a 22-month low.
• Rising Gold prices give a boost to Canadian mining stocks.

The price of Gold increased by more than 1 percent during international trading Monday, reaching the highest level in approximately 2 1/2 months. Investors seem to be seeking safety in the Precious Metal as global markets suffer from feuds between Saudi Arabia and Western governments. According to a report on Reuters, Gold futures also went up about 1 percent to $1,234.20 per ounce. Quantitative Commodity Research Analyst Peter Fertig said in the article, “Gold has now got a stronger tailwind from a flight to safety from risky assets. Gold’s next moves will depend on how long this sell-off continues.”

European stock shares hit a 22-month low, pressured by several factors including the tensions between Saudi Arabia and the West, ongoing trade disputes between the U.S. and China and the tumultuous Brexit negotiations. Analysts state the 2 percent lift for Gold bullion last week was the most significant inflow since January. Gold investments are typically a favorite safe-haven investment tool during uncertain economic times. However, for much of 2018, the strong U.S. dollar has kept the Precious Metal from growing in strength. Higher interest rates, which give power to U.S. Treasury bonds, have blocked Gold’s hopes for a more significant rally, until now.

Canadian Stock Index Gets Boost from Rising Gold Prices

The primary stock index for Canada, the Toronto Stock Exchange, was higher at midday Monday, as mining stocks rose alongside Gold prices. At 11:30 a.m. (ET), the index was up 26.98 points, according to The Globe and Mail. Investors began putting funds into Gold as a safe-haven option amid declining European equities and volatile global markets. The newfound strength for Gold bullion gave way to increases for two major Canadian mining companies. The Canadian dollar also edged higher against the U.S. currency Monday in anticipation of business survey data that will soon be released by the Bank of Canada.

At 2:50 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,227.90 Up $6.70
• Silver, $14.78 Up $0.09
• Platinum, $846.40 Up $6.40
• Palladium, $1,089.20 Up $18.40

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