• / Free eNewsletters & Magazine
  • / My Account
Home>UPDATE: Gold ends higher, recoups about half of last week's decline

UPDATE: Gold ends higher, recoups about half of last week's decline

UPDATE: Gold ends higher, recoups about half of last week's decline

09/26/2017

By Myra P. Saefong, MarketWatch , Rachel Koning Beals

Dollar index pushes higher; U.S. equities start lower for the week

Gold finished sharply higher on Monday, recouping roughly half of last week's loss, as declines in the U.S. stock market and growing tensions between the U.S. and North Korea lifted prices for the yellow metal to the highest settlement in more than week.

December gold rose $14, or 1.1%, to settle at $1,311.50 an ounce. Prices, which lost about 2.1% last week, saw their highest finish since Sept. 15, according to FastSet data.

The exchange-traded SPDR Gold Shares ETF (GLD) climbed by 0.9%.

"The backdrop for gold today is as bullish as it has been in a long time," said Mark O'Byrne, research director at GoldCore in Dublin. He expects gold prices to reach $1,400 before the end of the year.

With President Donald Trump "in the White House and the political situation in the U.S. and globally more uncertain than it has been in many years, gold will almost certainly continue to see robust safe-haven demand," he said. "This should push gold higher in the coming months."

Recent military tensions between North Korea and the U.S. and its allies (http://www.marketwatch.com/story/tensions-escalate-with-north-korea-as-us-planes-patrol-coast-pyongyang-warns-it-will-attack-2017-09-23) has helped to underpin gold's haven status as a hedge against a sudden escalation in geopolitical tension.

©2017 Morningstar Advisor. All right reserved.