Gold stabilizes after steep decline

The sharp rebound came after gold hit a six-year high earlier in the week, as a result of rising risk aversion among portfolio investors against a backdrop of slowing global growth and low nominal government bond yields around the world. . Around $ 17 trillion of bonds worldwide are now trading at negative yields.

At 8 AM ET, the futures for December delivery on the Comex exchange were at $ 1,513.70 an ounce, down 0.8% from late Thursday, but at a low of $ 1,511.25 posted on european morning.

Gold prices stabilized lower on Friday in New York after experiencing their biggest one-day decline on Thursday amid surprisingly strong US data and hoping for a escalation of the US-China trade war.

Spot gold was at $ 1,506.06, down 0.9%.

It also came amid the first signs that central banks, whose acquisition passed the first stages of this year’s rally, had lowered their purchases later.

Some, at least, expect this to be a temporary devaluation.

“If emerging markets cannot rely on the dollar as a guard against exchange rate volatility, then we need to build our defenses,” Duvvuri Subarrao, a former governor of the Reserve Bank of India, wrote in a blog published by Friday by World Gold Council. “Keeping gold within our reserves is an integral part of this self-defense.”/Investing.com

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