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Gold firms near 6-year peak on risk-off sentiment

Gold prices gained on Tuesday, hovering near a more than six-year high hit the previous day, as concerns around protests in Hong Kong, a slump in Argentina's markets and the ongoing Sino-US trade war dented risk appetite.

Spot gold rose 0.3 per cent to $1,515.21 per ounce as of 0116 GMT.

US gold futures rose 0.5 per cent to $1,525.10 an ounce.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.26 per cent while Japan's Nikkei tumbled 1.28 per cent.

On Monday, Wall Street stocks also fell sharply, with the S&P 500 losing 1.23 per cent. Protesters managed to shut down Hong Kong's airport, the world's busiest cargo airport, on Monday.

Fears of a possible return to interventionist policies, gripped the Argentine market after market-friendly President Mauricio Macri lost by a much wider-than-expected margin in presidential primaries.

Investors are focused on the Federal Reserve's annual symposium next week. Traders see a 74 per cent chance of a 25 basis-point rate cut by the Fed this September.

In Monday afternoon trading, US benchmark 10-year Treasury note yields fell to 1.64 per cent from 1.734 per cent late on Friday.

The dollar index, which tracks the greenback against a basket of six major rivals, was up 0.1 per cent.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.94 per cent to 847.77 tonnes on Monday from 839.85 tonnes on Friday.

Courtesy - Reuters

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