Gold market update
Gold rose from an earlier one-month low on Monday 20 September as concerns about property group China Evergrande’s solvency drove world shares lower, stoking risk aversion, while traders awaited the outcome of this week’s US Federal Reserve policy meeting.
Spot gold was up 0.3% at $1,760.14 per ounce by 13:00 GMT, after earlier hitting its lowest since August 12 at $1,741.86. US gold futures gained 0.3% to $1,757.30.
World shares fell on Monday as investors fretted about the spillover risk to the global economy from Evergrande’s troubles.
“No doubt those fears of systemic risk…may well be feeding into the market,” independent consultant Robin Bhar said. “We typically see flows into the dollar, into gold, into the yen when investors are worried.”
Other factors likely prompting investors to pick up gold at current levels include possible currency devaluation, the US debt ceiling negotiations, and lower prices driving some physical buying, he said.
Gold is considered a hedge against inflation that could result from widespread stimulus and currency debasement.
Gold price this month in AUD/OZ
What’s the difference between owning gold derivatives and owning physical gold? This week we take another look at the reasons why owning gold derivatives like ETFs do not provide the systemic risk protection that has been the key to gold’s success for millennia.
Read the article: Ensuring you get the full benefit of gold ownership
Gold in the news
Here are a few articles trending on the subject of gold:
- Legendary investor Mark Mobius says, “It’s going to be very, very good to have physical gold” as world currency markets continue to weaken: Mark Mobius on Physical Gold
- Legendary investor #2 John Paulsen tells Bloomberg he thinks gold, “Is poised to go parabolic”: John Paulsen talks gold on Bloomberg
- A few months ago, we heard about “the greening of Bitcoin” but the reality is that its carbon footprint is bigger than ever. It now takes as much power as the entire nation of the Philippines in order for the Bitcoin network to stay operational: Bitcoin’s 2021 power use already surpasses 2020 levels