Gold futures rose as a drop in global equities boosted demand for the precious metal as an alternative investment.
The MSCI All Country World Index dropped 0.8 percent as Hong Kong’s Hang Sang Index erased gains for the year. Through Sept. 26, gold climbed 1.1 percent this year, trailing gains in the Bloomberg Dollar Spot Index and global stocks.
“Today will be steady on the upside for gold as people try to hedge the selloff in the stock market,” George Gero, a New York-based precious-metals strategist at RBC Capital Markets LLC, said in a telephone interview.
Gold futures for December delivery rose 0.2 percent to $1,217.60 an ounce by 10:33 a.m. on the Comex in New York. Through Sept. 26, the price this quarter dropped 8.1 percent, heading for the first loss this year.
Earlier, gold pared gains after a report showed U.S. personal spending rebounded in August. Last week, the economy in the second quarter expanded by the most since 2011, the government said. Consumer spending accounts for about 70 percent of gross domestic product.
On Sept. 26, holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, extended a slump to the lowest since December 2008.
Through Sept. 26, futures this month dropped 5.6 percent.
Silver futures for December delivery fell 0.3 percent to $17.485 an ounce. Through Sept. 26, the price this month dropped 10 percent and 17 percent in the quarter, heading for the biggest slumps since June 2013.
On the New York Mercantile Exchange, platinum futures for January delivery rose 0.2 percent to $1,303.50 an ounce. Earlier, the price touched $1,296.50, the lowest for a most- active contract since June 28, 2013.
Palladium futures for December delivery climbed 0.3 percent to $786.40 an ounce. Through Sept. 26, the price this month tumbled 14 percent, heading for the biggest drop since September 2011.
© Copyright 2023 Bloomberg News. All rights reserved.