Gold jumps by 1% as Saudi attack raises safe values ​​- News

On Monday, the price of gold jumped 1%, as Saudi oil facilities were attacked, reducing risk appetite, boosting demand for bullion huts, while investors were waiting for hints on the monetary easing of major central bank meetings scheduled this week.

Spot gold was up 1% to $ 1,503.52 an ounce at 4:10 GMT. Prices had dropped 1.2% the previous week, in hopes that the tiff between trade and the United States of America would soon cease.

US gold futures rose 0.8% to $ 1,511.20 ounce.

Meanwhile in Dubai, 22k can be purchased at Dh169.25 and buyers can get 24k at Dh180.25.

Attacks on Saudi oil facilities have resulted in a rotation of stock interests into safe havens, said OANDA analyst Jeffrey Halley.

With escalating tensions in the Middle East and hope for further stimulus from major central banks, the next target for gold will be $ 1,530, he added.

The Iranian-backed Houthi rebel group of Yemen has claimed responsibility for the attack of the world's largest oil processing facility this weekend.

However, a senior US official said evidence indicated that Tehran was behind all this, and President Donald Trump said the United States was "stuck and laden" for a potential response to the problem. attack, jeopardizing its already tense relations with Iran.

The event hurt risk sentiment in the markets as Asian stocks fell to 515.4 and the yen hid up 0.4% to 107.64 to the dollar. Compared to a basket of currencies, the dollar was down 0.2% to 98,053.

Investors are also awaiting the results of the monetary policy meetings of the US Federal Reserve and the Bank of Japan on Wednesday to receive indications of their future political path.

"The accommodating monetary policy of the world's central banks will support the bullion call for the second half of 2019," said Benjamin Lu, an analyst at Phillip Futures, in a note. Central banks around the world are facing increasing pressure to distribute monetary support to declining economies as the US-China trade dispute has tarnished the business and business climate. Lower interest rates reduce the opportunity cost of holding unproductive bullion and weigh on the dollar.

At the same time, the risk climate was heavy. Chinese data showed that the factories and consumer sectors slowed again in August. trade barriers and weak domestic demand.

The spot gold price could re-test the resistance at $ 1,524 an ounce, amounting to a temporary support of $ 1,480, Reuters technical analyst Wang Tao said.

Among the other precious metals, silver rose 3% to 18 dollars an ounce and platinum 0.6% to 953.78 dollars. At the same time, palladium rose 0.4% to $ 1,612.50 per ounce.

The dollar falls, the oil-exporting currencies rise; yen companies

The dollar fell, while safe havens and currencies of oil-producing nations rallied on Monday as a result of an attack on Saudi refining facilities that disrupted global oil supply and demand. exacerbated tensions in the Middle East.

The Canadian dollar rose 0.4% to 1.3233 to the dollar. The Norwegian krona rose 0.5% to 8.9363 to the dollar. The two currencies often evolve with the price of oil because the countries are the main exporters of oil.

In India, a major importer of crude oil, the rupee has fallen by almost 0.7%.

Against a basket of currencies, the dollar fell slightly to 98,162.

Beyond oil, foreign exchange markets are awaiting the results of meetings of central banks in the United States and Japan this week as well as economic data in Australia and New Zealand that could determine the rate outlook at the Antipodes.

The pound lost 0.3 on a seven-week high to reach $ 1.2486.

Data released on Monday show that the slowdown in the Chinese economy intensified in August, as industrial production grew at its weakest pace in 17.5 years and retail sales were weaker than expected .

This added to the pressure for economic stimulus and offshore trade, the Chinese yuan has weakened by 0.25% to 7.0631 for a dollar.

Regarding the policy decision taken by the Bank of Japan on Thursday, a third of economists polled by Reuters expect a revival of stimulus measures. But sources say it could be an urgent call, as policymakers wait until the last minute to gauge the market's reaction to the Fed's decision a few hours earlier.

Japanese markets are closed on Mondays for public holidays.

The euro remained stable at 1.1073 dollar.

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