Gold pulls back from two-month highs

Gold fell yesterday, retreating from twomonth highs hit in the previous session, as global equity markets recovered some poise after dramatic losses.

Spot gold was down 0.2 per cent at $1,221.29 (Dh4,485) an ounce by 1117 GMT, having jumped 2.5 per cent on Thursday as an equities sell-off steered investors to safe-haven assets.

Thursday’s peak of $1,226.27 was the highest since July 31. Gold rose about 1.6 per cent last week, on track for its biggest weekly gain in seven.

“The markets have kind of stabilised and things have calmed down a bit and the sort of momentum for gold to push higher is not with us at the moment,” said Matthew Turner, Macquarie commodity strategist.

Global shares were having their strongest day in nearly a month yesterday, as European and Asian markets recovered from a brutal sell-off that left them on track for their worst week since February.

Despite gold’s sharpest one-day percentage gain since June 2016 on Thursday, the precious metal is still down about 11 per cent from its April peak, with investors buying dollars as the US-China trade war unfolds against a backdrop of rising US interest rates.