Gold price up as dollar eases; global growth concerns lend support

New York (Jan 25)  A synchronised global economic slowdown is underway and any escalation in the U.S.-China trade war would trigger a sharper downturn, according to the latest Reuters polls of hundreds of economists from around the world. Investors are also worried about the impact of the longest U.S. government shutdown in history, now in its 34th day, with two bills to end the partial shutdown failing to win enough votes in the Senate. Yet another key focus is U.S.-China trade relations, with U.S. Commerce Secretary Wilbur Ross stating on Thursday the two countries were "miles and miles" from resolving issues. "We have seen quite a bit of asset reallocation in recent times, the Exchange Traded Fund holdings have risen quite substantially in recent weeks and months," Strachan said. Holdings of SPDR Gold GLD, the largest gold-based ETF, hovered around their highest levels since late June 2018.

Among other metals, palladium , which hit a record high of $1,434.50 an ounce last week on low inventories and rising demand, was steady at $1,319.50. The metal was, however, heading for its first weekly drop in five, falling about 4 percent so far this week.

Silver rose 0.4 percent to $15.37 per ounce, while platinum gained 0.3 percent to $803.30, on track for its first weekly gain in three.

Reuters