Gold Jumps on Safe Haven Buying

Written by Staff Writer

bars business global intergold 335268Gold jumps 1% as attacks on Saudi lift safe-haven bets -Reuters
"Gold prices jumped 1% on Monday as attacks on Saudi Arabia's oil facilities dented risk appetite, boosting demand for the safe-haven bullion, while investors awaited for clues on monetary easing from major central bank meetings due this week....

The attacks on Saudi oil installations have lead to a rotation of interests out of stocks and into safe-havens, said OANDA analyst Jeffrey Halley. The risk-averse sentiment in the market underpinned the bullion, often seen as an alternative investment during times of political and financial uncertainty. With escalating tensions in the Middle East and hopes of more stimulus measures from major central banks, the next target for gold will be $1,530, Halley added....Investors also await the outcome of the U.S. Federal Reserve and Bank of Japan's policy meetings on Wednesday, for signals on their future policy path. 'Accommodative monetary policy by global central banks will support bullion's appeal for 2H 2019,' Phillip Futures analyst Benjamin Lu said in a note. Central banks globally are facing increasing pressure to dole out monetary support for flagging economies as the U.S.-China trade dispute hurt trade and business sentiment."