Gold Supported Amid Stress In Equities

Published on Nov 18, 2021 11:41

Gold stayed largely supported in last session as the metal saw a good recovery following the decline on Tuesday. Selling pressure in the US equities and good bargain hunting pushed up Gold towards its five month high yet again. The metal currently trades flat at $1867 per ounce. Traders focused on the ECB`s Financial Stability Review which noted that near-term pandemic risks lessen, but vulnerabilities ahead build up. Improved economic conditions have reduced near-term tail risks to financial stability though supply disruptions and rising energy prices pose risks to inflation and the economic recovery. It also noted that further ahead, vulnerabilities from growing stretch in property and financial markets, risk-taking by non-banks, and elevated sovereign and corporate debt are building up. Gold has seen a choppy action this week but a drop in value of Bitcoin from record high and stress in equities is capping downside despite extremely firm action in the US dollar index.