NEW YORK/LONDON: Gold rose around 1 percent o n T uesday, as losses in equities triggered buying into the bullion market which had seen a recent sell-off.
The precious metal was outperforming Wall Street for a second straight session, on track for its fourth straight daily rise which would be its longest streak in two months. Some investors appeared to take advantage from lower prices to re-enter the gold trade after a sharp sell-off that occurred during a strong run of US data that dashed hopes of US monetary easing.
Bullion received a boost as some safe-haven buying emerged after the US equities benchmark S&P 500 broke below a key support before the start of the first-quarter earning season. Technical and options-related buying in gold also helped.
"There is still a tremendous amount of open interest above the $1,800 strike in the longer-dated options, which is encouraging," said Anthony Neglia, president of Tower Trading and a COMEX gold options floor trader.
Spot gold was up 0.9 percent at $1,655.96 an ounce by 1:06 p.m. EDT (1706 GMT), reversing initial losses after having traded as low as $1,631.70.
US gold futures for June delivery were up $13.50 at $1,657.20.
Comments
Comments are closed for this article.