MW; Gold edges higher as stocks retreat on geopolitical worries
Gold futures gained ground Tuesday, rising from a more than 5½-year low, as global equity markets retreated in the face of geopolitical fears after Turkey appeared to shoot down a Russian jet fighter.
Gold for December delivery on Comex GCZ5, +0.74% rose $6.90, or 0.6%, to $1073.70 an ounce. Gold on Monday settled at its lowest level since February 2010 amid a broad commodity rout as the dollar strengthened. December silver SIZ5, +0.66% rose 8.3 cents, or 0.6%, to $14.115 an ounce. Silver ended Monday at its lowest level since 2009.
See: How long will commodity slump last? Ask China.
Gold, a traditional safe haven, was buoyed after Turkey’s military shot down what was likely a Russian jet fighter along the Syrian border. Turkey, which didn’t identify the nationality of the jet, said the plane violated Turkish airspace and ignored warnings to return.
“The heightened geopolitical threat from the downing of a Russian jet by a NATO member country while Brussels remains in lockdown is sending people into safe havens like the yen and gold and out of travel-sensitive stocks,” said Jasper Lawler, market analyst at CMC Markets, in a note.
Brussels, the Belgian capital, remains on lockdown and under the highest terror-threat status as authorities pursue a terrorist cell.
The turmoil weighed on stocks. U.S. stock-index futures pointed to a modestly lower open for Wall Street, while European equities saw heavier pressure.
In other metals trade, copper also rose off a multiyear low, with December high-grade copper futures HGZ5, +0.07% up 0.25 cent, or 0.1%, to $2.0235 a pound.
December palladium PAZ5, +0.03% rose $2.15, or 0.4%, to $543.50 an ounce, while December platinum PLZ5, -0.32% lost $2.70, or 0.3%, to $845 an ounce.
