Gold dips $25 amid growing appetite for riskier assets
On Monday, gold futures dipped abruptly following obvious signs of increasing appetite for risky assets. There’s no wonder Japan’s stocks grew 7%.
April gold decreased to $1,214.40 an ounce, a 2% loss. The precious metal closed at $1,239.40 or -0.7% on Friday. Nevertheless, it didn’t prevent gold from demonstrating its best weekly gain since December 12, 2008. It was a 7.1% soar.
Last week there was a period of quite heavy buying for gold, especially on Thursday. Equity markets sagged while expectations increased that the Fed would put off another interest rate hike. Meanwhile, on Friday, Wall Street shares demonstrated a five-day losing marathon and then managed to grasp the biggest daily gain for February, though all three key indexes kept sagging the whole week.
On Monday, American stock markets are going to close for the President’s Day holiday.
Chinese shares got back to action on Monday, right after a week-long break for the Lunar New holiday. For instance, the Shanghai Composite dipped 0.6%, while the Nikkei 225 index surged 7.2%, that came as the greenback managed to regain some footing against the major Japanese currency.
Apart from that, March silver futures sagged to $15.30 an ounce or 3%. Last week silver went up almost 6.9%. Meanwhile, high-grade copper futures for March delivery gained 5 cents, thus climbing up to $2.083 a pound.