Gold Rides Apple Warning to Reclaim $1,600

© Reuters.

By Barani Krishnan – Gold broke through the $1,600 ceiling Tuesday after a revenue warning from Apple (NASDAQ:) saw funds flee from risk and into safe havens.

Palladium, meanwhile, returned to record highs after more than a month’s break, as fresh worries about short supplies in the auto-catalyst metal drove prices to new peaks.

The $1,600 milestone achieved by both bullion and futures of gold capped six weeks of attempts by gold bugs to return to the perch last hit when U.S.-Iran tensions spiked.

on New York’s COMEX settled Friday’s trade settled up $17.620, or 1.1%, at $1,603 per ounce. The session high was $1,608.15, a peak not seen by COMEX gold since Jan. 8.

, which tracks live trades in bullion was up $20.46, or 1.3%, at $1,601.26 by 2:55 PM ET (19:55 GMT). Bullion earlier hit a six-week high of $1,605.35.

Stocks and other risk assets fell as U.S. markets reopened from the President’s Day holiday, amid Apple’s warning that the Covid-19 outbreak will prevent it from meeting its Q2 revenue forecasts due to production and sales slides in China, the manufacturing hub and second-biggest market for iPhones.

“Apple’s warning on sales affected by the coronavirus is raising interest in reexamining the global economic pullback on the epidemic,” said George Gero, precious metals analyst at RBC Wealth Management in New York. “All this is adding to the safe-haven appetite for gold.”

rose $180.90, or nearly 8%, to settle at $2,469.60. It hit a record high of $2,503.80 earlier as power shortages at South African mines reignited fears of tight supply.

READ  UPDATE 3-Talks between UAW and GM take 'turn for the worse' - union official
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here