Stock Market

Gold futures jump, aim for biggest daily rise in 2 months after stocks succumb to pressure – News Opener

Gold futures jumped Thursday, heading for their best daily gain in about two months, as the yellow metal benefited from risk aversion in the wake of the worst day for U.S. stocks in nearly two years on Wednesday.

Gold futures


rose $31.40, or 1.7%, to $1,847.40 an ounce, putting them on pace for the best daily percentage rise for the most-active contract since March 17, according to FactSet data. Silver


for July delivery was also trading 1.7% higher Thursday.

In U.S. stocks, the Dow Jones Industrial Average

was lower again Thursday, by about 0.8%, a day after it and the S&P 500 index

booked their worst day in about two years, as investors worried about inflation cutting into margins at big-box retailers and perhaps beyond.

“An economic recession in the U.S. is now on the minds of traders and investors who were already saddled with other concerns, including the Russia-Ukraine war and Covid cases causing major cities in China to be on lockdown, which is disrupting global trade,” Jim Wyckoff, senior analysts at wrote Thursday. “A lower U.S. dollar index and a decline in U.S. Treasury yields on this day are also working in favor of the metals market bulls.”

Gold has been basically flat this year as the S&P 500

has dropped 18%.

Analysts at HSBC Global Private Banking say the current environment is one that’s mixed for gold.

“Gold of course typically behaves differently from the more cyclical commodities, and the rising real rate and strong dollar are headwinds for gold, while the mixed risk appetite is a tailwind,” the firm said in its second-half investment outlook, which is neutral on the yellow metal and bullish toward the dollar

In other metals trade, July copper

 rose 2.2% to $4.27 a pound.

July platinum

gained 2.7% to $949.30 an ounce, while June palladium

fell 1.6% to $1,960.50 an ounce.

 Source link

Back to top button