Gold Prices Edge Down in Asia Even as Demand Rises
Investing.com - Gold prices were flat on Monday morning trade in Asia after a week of gains.
Demand for gold, a safe haven asset, has increased over the past few weeks driven by threats of a sharply escalated trade war between the U.S. and China and ongoing currency crises in various emerging markets – from Turkey to Argentina.
Gold Futures for December delivery were trading down 0.04% at $1,199.90 per ounce at 10:42PM ET (02:42 GMT) on the Comex division of the New York Mercantile Exchange.
Gold futures have been moving over and under the $1,200 mark since falling below that point in mid-August and hitting an 18-month low on August 18, as investors looked to continued bull runs in US equity markets and a strong dollar.
Prices dropped slightly on Friday after a positive jobs report in the U.S.
But gold has gained some ground over the past couple of weeks and the continued volatility in emerging market currencies is helping drive demand. Emerging market currencies showed the highest volatility since February 2016, according to research by JP Morgan Chase (NYSE:JPM) & Co.
Purchases of physical gold picked up speed across Asia last week, particularly in India where gold is a popular gift during the upcoming festive season. China and India are the first and second largest consumers of gold. In India, gold futures hit a two-month peak on Friday.
Demand in India was also partly driven by the ongoing fall in the rupee, which is trading at all-time lows against the US dollar.
|AUD / NZD 1.07073 / 1.07018
|AUD / USD 0.78241 / 0.78214
|CAD / JPY 98.991 / 98.963
|EUR / AUD 1.4047 / 1.40434
|EUR / CHF 1.03539 / 1.03509
|EUR / GBP 0.70983 / 0.70968
|EUR / JPY 133.66 / 133.644
|EUR / USD 1.0988 / 1.09862
|GBP / AUD 1.97908 / 1.97857
|GBP / CHF 1.45866 / 1.45825
|GBP / JPY 188.32401 / 188.284
|GBP / USD 1.54809 / 1.54785
|NZD / JPY 88.917 / 88.871
|NZD / USD 0.73091 / 0.73062
|USD / CAD 1.22916 / 1.22887
|USD / CHF 0.94232 / 0.94201
|USD / JPY 121.655 / 121.635