Gold up 1pc

GOLD rose more than 1 percent on Monday to its highest in about 2-1/2 months as investors sought refuge after a slide in European equities compounded jitters on global stock markets.

Spot gold was up 1 percent at $1 230,11 an ounce by 1136 GMT, having touched its highest since July 26 at $1 233,26. US gold futures rose 1 percent to $1,234.

“Gold has now got a stronger tailwind from a flight to safety from risky assets. Gold’s next moves will depend on how long this sell-off continues,” said Quantitative Commodity Research analyst Peter Fertig.

Global stocks were under pressure, with European shares falling to a 22-month low, weighed down by factors including the US-China trade dispute, stalled Brexit negotiations, rising tensions between Saudi Arabia and western powers and concern about an economic slowdown in China. The International Monetary Fund last week said that risks to the global financial system, which have risen over the past six months, could increase sharply if pressures in emerging markets escalate or global trade relations worsen.

“After many months investors are looking at bullion with much more interest and the price is moving consequently. The outflow in exchange-traded funds (ETF) seen in the last few months is now changing direction as well,” ActivTrades chief analyst Carlo Alberto De Casa said in a note.

Holdings of SPDR Gold , the largest gold-backed ETF, rose nearly 2 percent last week. That was the biggest weekly inflow since January, having registered declines of more than 4 million ounces since hitting a peak in late April.