Investing.com – Gold seems stuck near $1,500.
Both bullion and kept on their bullish perch Monday as Wall Street’s major indexes climbed on another wave of risk appetite across markets.
, which tracks live trades in bullion, was down $5.17, or 0.3%, at $1,509.09 per ounce by 3:15 PM ET (20:15 GMT). Even at the lows of the day, spot gold stayed above $1,500, ringing in a bottom of $1,504.53.
for December delivery on COMEX, meanwhile, settled just 30 cents lower at $1,511.10.
“It has been ‘risk-on’ at the start of the new week so far, with global stocks and rallying and (the) safe-haven yen falling … supported by positive signals around U.S.-China trade negotiations,” said Fawad Razaqzada, technical analyst at Forex.com.
But gold bucked the trend. Razaqzada noted that some traders needed a hedge to erstwhile “weakness in data and not (so) brilliant corporate earnings.”
“It remains to be seen how much further trade-related optimism will support Wall Street, and risk assets in general, going forward,” he said.
TD Securities added in a note: “For money managers, gold and friends can still provide an effective hedge against further deterioration in growth.”
The Canadian bank-backed brokerage noted such slowdown could open the door to further rate cuts in the first half of 2020, allowing capital to embrace risk in the near term.
This was “in spite of global growth concerns and the fact that the Fed may be set to stay on hold in December 2019 and January 2020,” TD Securities added. “This suggests that a positioning-driven selloff could be more shallow than would otherwise be anticipated.”
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