© Reuters.
Investing.com – The hedge-as-you-risk mode of play in gold continued to provide a lifeline to prices of the yellow metal on Monday, even as stocks on Wall Street hit record highs.
Both bullion and futures rose about half a percent each on the day, potentially exaggerated by thin trading volumes typical for this time of year.
for February delivery on New York’s COMEX settled up $7.80 at $1,488.70 per ounce. It earlier hit an 11-day high at $1,489.75
, which tracks live trades in bullion, rose $6.78 to $1,484.73 by 2:19 PM ET (19:19 GMT).
On Wall Street, the and hit record highs as investors responded to a broad cut in Chinese import tariffs amid Beijing’s deliberation on a partial US trade deal.
“It looks like gold is going up as people feel they still need a hedge against the risk-taking that seems to know no limits on Wall Street,” said George Gero, precious metals analyst at RBC Wealth Management in New York. “There are conflicting but also hopeful headlines on the U.S.-China tariff talks and that’s keeping the bid for gold alive.”
In the latest twist on the trade talks, President Donald Trump said last week that the phase one deal between the two countries will be formalized soon, citing his phone call with his Chinese counterpart Xi Jinping on the matter.
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Source: Investing.com
