With gold and silver futures ending up 0.7% and 0.2% respectively on Monday, as both the U.S dollar and stock markets fell, Coin News cites an analysis that “More safe-haven demand was featured amid the recent U.S. stock market sell-off. Short covering by the futures traders, whose bearish bets recently are not paying off, and bargain hunting in the cash market were also seen in gold to start the trading week.”
“Also underpinning gold was Chinese economic data for the third quarter suggesting the economy likely grew at its weakest pace in more than five years,” reports Reuters, leading investors to speculate that “Beijing might roll out more stimulus measures.” The data also showed that “Gold got a boost from a strong rebound in Chinese imports of industrial commodities in September.”
The Reuters article notes that “Singapore launched 25 kg (around 804 ounces) gold contracts on Monday, the latest Asian country to start exchange-traded contracts with the aim of providing a regional benchmark price.” The Wall Street Journal spotlights this shift in a feature headlined “Asian market hubs move into gold.” Click-thru on Google for the entire article or read an excerpt here.
Arabian Money: Will gold and silver prices continue to go up as stocks go down?