Gold rose on Monday from a one-month low reached earlier, as concerns about the solvency of real estate group China Evergrande sent global shares lower, leading to risk aversion, while traders awaited the outcome of this week’s US Federal Reserve meeting.
Spot gold rose 0.3 percent to $1,760.14 an ounce by 1300 GMT, after hitting its lowest level since August 12 at $1,741.86 earlier. US gold futures rose 0.3 percent to $1,757.30.
Global stocks fell today as investors worried that Evergrande’s problems could spill over into the global economy.
Gold is a hedge against inflation that may result from widespread stimulus and currency depreciation.
“The Fed meeting is overshadowed by the dollar increase because the majority of market participants expect the Fed to signal less stimulus sometime this year, keeping gold under pressure,” Commerzbank analyst Daniel Pressman said.
An increase in interest rates raises the opportunity cost of holding non-returnable gold.
As for other precious metals, silver rose 0.2 percent to $22.43 an ounce, after hitting its lowest level since November 2020.
Platinum fell 1.4 percent to $927.53 an ounce, and palladium fell 2.2 percent to $172.26.