Gold climbs back from one-year low as dip buyers arrest slide
A rout in technology stocks is adding pressure to precious metals
Gold prices recovered from a one-year low as dip buyers stepped in to support the metal. Lower oil prices helped provide some relief from inflationary pressures. After sliding 3.7 percent on Friday, gold recovered by as much as 0.7 percent, reaching near US$3,900 an ounce. This marked a significant rebound from its worst October performance since 2008.
However, the metal remains vulnerable to any escalation in conflicts in the Middle East, where tensions are high. Trump has indicated a willingness to resume strikes on Iran after the midterm elections, while Iran has threatened further retaliation. In addition to geopolitical risks, technology stocks are also contributing to the downward pressure on gold.
The recent sell-off in the tech sector has prompted investors to liquidate assets, including precious metals, to offset losses. While some long-term investors see gold as being undervalued at its current price, market sentiment remains cautious.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
