Gold rebounded from its biggest decline in more than two years on signs of fresh strains on the global economy which may prompt stimulus from central banks.
Spot gold climbed as much as 0.7% to $1,393.94 an ounce, and was at $1,392.77 at 8:45 a.m. in London. Prices fell 1.8% on Monday, the most since November 2016, as American equities surged to a record after the resumption of talks between the U.S. and China. A gauge of the U.S. dollar was steady after rising 0.5% Monday.
Prices rose after factory activity across Asia and Europe shrank in June, while the U.S. showed only meager growth, according to purchasing managers’ indexes. Australia executed its first back-to-back interest-rate cuts in seven years Tuesday.
Source : Bloomberg