Gold prices staged a solid rebound on Tuesday as a weaker trading session in Asia and further depreciation in the Chinese yuan spurred investors to buy into safe haven assets.
Gold futures for April delivery GCJ6, +1.02% jumped $7.60, or 0.6%, to $1,217.70 an ounce, rising for the fourth time in five sessions. The contract slumped 1.7% on Monday as broader optimism in the financial markets translated into rallies for risk assets such as equities and oil, but a pullback for gold.
However, that sentiment was reversed on Tuesday as Asian shares SHCOMP, -0.81% dropped after the People’s Bank of China weakened the yuan by the most in six weeks, according to media reports. The move was seen as yet another sign of a slowing in the Chinese economy and adds to fears the world’s second largest economy could cut its imports.
In other metals, silver for March SIH6, +0.70% rose 0.2% to $15.22 an ounce, while copper for the same month HGH6, -0.71% lost 0.4% to $2.11 a pound.
March palladium PAH6, +0.40% was slightly lower at $498.55 an ounce, and April platinum PLJ6, +1.34% rose 0.2% to $929.20 an ounce
This story originally appeared on MarketWatch by Sara Sjolin on February 23, 2016. View article here.
In past editions of “Gold News & Views,” I’ve discussed why I think we should be paying close attention to central banks and their increased demand for gold. In short, a small number of central banks have been buying vast quantities of gold. This may suggest that...