Gold gains in safe-haven bid to highest level since June
Gold prices rise to their highest level since mid-June, +0.6% to $1,291.40/oz., as Apple’s bearish revenue outlook exacerbates concerns about a slowing economy and sparks demand for safe-haven bullion.
“Gold is overbought on most measures and needs to consolidate but with the speculative long still building, the market will be looking for $1,300 sooner than expected,” says Saxo Bank analyst Ole Hansen. “If the fourth quarter theme of lower dollar, stocks and yields carries on, gold is likely to break higher and set its sight on the previous high around $1,380.”
“Recent market volatility has confirmed that gold remains a safe-haven asset and the yellow metal helps to reduce volatility in a portfolio, “Gold prices have behaved as you would expect during the recent period of uncertainty.”