Gold Jumps to Two-Year High as Bullish Wagers Surge on Turmoil
(Bloomberg) -- Gold climbed to the highest level in more than two years and silver surged as investors piled into haven assets on concern political turmoil and the U.K.'s decision to leave the European Union will limit global growth.
Gold for immediate delivery advanced as much as 1.1 percent to $1,371.39 an ounce, the highest level since March 2014, and traded at $1,367.64 by 10:07 a.m. in Singapore, extending gains to a sixth session. Silver increased as much as 2.4 percent to $20.4103 an ounce and traded at $20.2469.
“Investors are pouring money into gold as there's increasing anxiety over the global economic outlook as well as political uncertainty,” said Wu Zhili, Shenzhen-based analyst at Shenhua Futures Co. “The accommodative stance of central banks is also favorable for commodities, especially precious metals.”
Precious metals are advancing as investors shun risk assets amid market turbulence in the aftermath of the U.K. vote to leave the EU. The decision is dimming prospects of the Federal Reserve raising U.S. interest rates this year and has prompted speculation that further stimulus may be likely from the European Central Bank and the Bank of Japan. Negative rates in Europe and Japan have boosted the lure of bullion.
Gold assets in exchange-traded funds surged 2 percent to 1,997.28 metric tons on Tuesday, the highest since 2013, and have increased 37 percent this year, according to data compiled by Bloomberg.
Open interest, a tally of outstanding contracts in gold futures on the Comex in New York, climbed to the highest on Friday since November 2010. In the week ended June 28, money managers boosted their net-long positions on the precious metal to the highest since data started in 2006, U.S. Commodity Futures Trading Commission data show.
To contact Bloomberg News staff for this story: David Stringer in Melbourne at dstringer3@bloomberg.net, Feiwen Rong in Beijing at frong2@bloomberg.net. To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net, James Poole
With assistance from David Stringer, Feiwen Rong
-
Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
-
Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
-
India Exports Capital. Why Not Export Trusteeship?
The big question, then, is whether India can build an institution that global borrowers, investors, banks, and lawyers can trust, even without an Indian connection.
-
France's Economy & Politics Are In Crisis | The Reason Why
Let's look at how the French economy and politics evolved under Nicolas Sarkozy, Franois Hollande and Emmanuel Macron.
-
You May Inherit The Business. You Must Earn Its Credibility.
Succession tests the founder's ability to share authority as much as it tests the next generation's readiness to assume it.
-
Signing Deals Is One Thing; Making Them Work Is Another | The Week In Whys
Sometimes, things don't turn out as planned. Indian companies have lost some bids to rivals, some projects won't produce until 2030.
-
FOMC Wall, PERM Suspension, Hospital Stocks | Talking Points This Week
A PERM suspension would directly affect green-card sponsorship rather than H-1B visas, so the near-term earnings impact could remain relatively limited. The key question is whether this marks a new phase in US scrutiny of Indian IT.
-
Everything, Everywhere, All At Once: Dalal Street's Week To Forget | Joining The Dots
Visa curbs, a Starlink spat and cancer drug caps: what connects this week's shocks for Indian markets
-
India Is Going Abroad For Critical Minerals. But It May Take Years To Pay Off | The Reason Why
Although India's steps are in the right direction, they remain modest compared with India's growing dependence.
-
When Everyone Has AI, What Gives You An Edge?
India's young workforce is entering an uncertain world of work where powerful AI tools are becoming widely accessible. The advantage will belong to those who combine deep expertise with digital fluency, and the distinctly human capabilities that technology cannot manufacture.
