Gold seems to be currently trading more as a risky asset than a safe haven

The gold price declined on Friday alongside the broader financial markets as the U.S. dollar held firm in morning trading.  The spot price of gold fell to a fresh 4-month low of $1,571.20 per ounce in overnight trading, but pared its loss to trade down by $10.56, or 0.7%, at $1,583.74.

Commenting on the gold price, Anne-Laure Tremblay – a precious metals strategist at BNP Paribas – stated that “Gold seems to be currently trading more as a risky asset than a safe haven.  While the U.S. dollar has gained on the back of higher risk aversion, gold was sold off.”  She added that “The decline is likely a consequence of liquidation in the paper market rather than lack of interest on the physical side.”

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