Gold rose to 9-week peak

07.01.2016

On Thursday, the price of gold jumped to a nine-week high as investors focused on safe assets amid the collapse in global stock markets lead by China.

On Thursday, global stock markets have collapsed after China's stock market was suspended on a collapse of more than 7% at the opening, which is second time this week.

Risk aversion also strengthened after China's central bank set the official exchange rate of the yuan below the adjusted rate environment. The decline was the largest decline since August last year, when China suddenly devalued the national currency market by 2%, triggering a rapid sell-off in the markets.

Some investors consider such tactics as an attempt to strengthen China's growth, while the others worry about a currency war that could destabilize the world economy.

The negative sentiment spread to European stock markets where the German DAX fell 3.5% following the suspension of trading in China and the collapse in oil prices, which contributed to sharp sales.

Wall Street pointed to a decline at the opening of Thursday trading, where futures on the Dow fell 400 points, or 2.5%. On Wednesday, US indices closed at the lowest level since the beginning of October.

On the Comex division of New York Mercantile Exchange, gold futures for February delivery rose $ 11.60, or 1.06%, to $ 1103.50 per troy ounce. Earlier, prices rose to $ 1104.60, the peak of November 6.

On Wednesday, gold jumped $ 13.50, or 1.25%, as investors turned to safer assets after the announcement of North Korea's successful nuclear test, while the markets continue to track the growth of tension between Saudi Arabia and Iran.

The precious metal gained this week 4% due to increased demand for safe assets amid geopolitical tensions.

Also on the Comex, silver futures for March delivery rose 4.9 cents, or 0.35%, to $ 14.02 per troy ounce.

On Thursday, copper prices fell to six-week lows, as a sharp decline in the Chinese stock market and the further depreciation of the yuan have undermined demand for the industrial metal.

This week copper fell 4.5%. The Asian country is the world's largest consumer of copper, with its share of almost 45% of world consumption last year.

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