WASHINGTON (dpa-AFX) - Gold prices are moving higher on Wednesday, extending gains from previous session, with traders seeking the safe haven of the yellow metal amid mounting worries about global economic growth and the impact of a partial U.S. government shutdown which looks very likely to extend into the New Year.
Investors remain wary of looking for riskier assets following stock markets almost across the globe plunging to multi-month lows due to concerns about economic slowdown and the political uncertainty in the U.S., in addition to worries about U.S.-China trade war.
The yellow metal is quite firm despite the U.S. dollar gaining some ground against most major currencies, with the Federal Reserve staying stubborn with its stance of 'gradual rate hikes' if situation demands such moves.
The dollar index is up by around 0.23% at 96.23.
Gold futures for February are up $5.35, or 0.42%, at $1,277.15 an ounce. On Monday, gold futures ended up $13.70, or 1.1%, at $1,271.80 an ounce.
Silver futures for March are gaining $0.147, or 0.99%, at $14.967 an ounce, while Copper futures for March are rising $0.052, or 1.95%, at $2.713 per pound.
Recent remarks by White House trade advisor Peter Navarro who reportedly said that the trade war between the U.S. and China would not come to an end in near term and concerns about liquidity in the U.S. banking system pushed up gold prices on Monday.
Steven Mnuchin's statement that he spoke with the chief executive officers of the six largest U.S. banks Sunday and that they confirmed about sufficient liquidity in the system raised concerns about liquidity instead of allaying doubts.
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