Gold prices bounced off their lowest level in around three weeks on Tuesday, as worries about a global economic slowdown boosted appetite for safe haven assets.
Comex gold futures fell to an intraday low of $1,276.00 a troy ounce, the weakest since Dec. 28, before recovering to trade at $1,282.55 by 8:10AM ET (13:10 GMT).
Meanwhile, spot gold was trading at $1,283.07 per ounce, up $2.70, or almost 0.2%.
The International Monetary Fund on Monday trimmed its 2019 global growth forecast, citing a bigger-than-expected slowdown in China and the eurozone, and said failure to resolve trade tensions could further destabilize a slowing global economy.
The downgrade came just hours after China reported its slowest quarterly economic growth since the financial crisis and its weakest annual expansion since 1990.
The news prompted investors to shun riskier assets, such as stocks, and flock to traditional safe haven assets like bullion.
Gains were limited however by a rising U.S. dollar, which held near a three-week high against a basket of major currencies.
A stronger dollar can be a negative for commodities priced in the currency, making them more expensive to users of other currencies.
Source: Investing
RELATED NEWS
Gold Extends Decline After Trade Breakthrough, U.K. Election
Friday, 13 December 2019 07:42 WIBGold headed for a back-to-back decline as President Donald Trump signed off on a so-called phase-one trade deal with China and an exit poll indicated a comfortable majority for the governing Conservative Party in the U.K.'s national election. Bullion for immediate delivery fell as much as 0.5% in e...
Gold ends lower as Trump tweet raises optimism that trade deal with China near
Friday, 13 December 2019 02:09 WIBGold prices ended lower on Thursday as President Donald Trump's tweet that a trade deal with China is near rallied the stock market, dulling demand for the haven metal. Gold prices had been trading higher early Thursday, with uncertainties surrounding a U.K. election and dovish stances by the Feder...
Gold to Extend Gain as Citi Says Low U.S. Rates Here to Stay
Thursday, 12 December 2019 19:50 WIBGold™s got more room to rally as there™s little possibility of the Federal Reserve raising interest rates in 2020, according to Citigroup Inc (NYSE:C). Futures on the Comex will average $1,575 an ounce in 2020, and could climb above $1,600, with an upside bias seen at the end of the year, Doshi...
Gold Holds Advance on Fed View, Palladium at Record
Thursday, 12 December 2019 16:27 WIBGold held a gain as investors weighed the Federal Reserve™s signal that it would keep interest rates on hold through 2020. Palladium notched a fresh record. Spot gold -0.1% to $1,473.64/oz at 6:38am in London; +0.7% on Wednesday. Bloomberg Dollar Spot Index steady near lowest ...
Gold Prices Rise as Fed Decides to Hold on Rates, Signals No 2020 Rate Hike
Thursday, 12 December 2019 12:51 WIBGold prices traded higher on Thursday in Asia after the U.S. Federal Reserve held its benchmark interest rate steady and signalled it expects that hold to last through 2020. U.S. Gold Futures rose 0.3% to $1,478.95 per ounce by 11:49 PM ET (03:49 GMT). Overnight, the Fed kept U.S. rates unchanged ...
U.S. Core Inflation Modest in November Ahead of Fed Meeting
Stocks Open Slightly Lower as Gloomy Trade Clouds Offset Monetary Policy Boost
Lagarde's ECB Keeps Policy Unchanged as Strategy Review Looms
Gold prices end higher for first time in 3 sessions
ZEW Investor Sentiment Poll Reaches 21-Month High in December
Hong Kong Stocks Surge on Trade Deal Reports
Friday, 13 December 2019 08:49 WIB
Hong Kong stocks surged out of the blocks Friday morning after reports China and the United States had finally reached a partial trade deal that will see Washington cancel the imposition of fresh tariffs planned for the weekend.
The Hang Seng...