As investors see world beset by risk, gold rebounds from tumble

SINGAPORE (Oct 5): Gold rebounded after the biggest drop in more than a year as investors reminded themselves of a world that’s beset by risk, from the prospect of further currency weakness to the final stretch of the US presidential election.

Spot gold climbed as much as 0.5% to US$1,275.28 an ounce and traded at US$1,272.40 at 2.53pm in Singapore, according to Bloomberg generic pricing. Prices tumbled 3.3% on Tuesday, the most since July 2015, as prospects for higher US rates and less stimulus in Europe spurred a selloff.

“It’s a buying opportunity,” Bob Takai, chief executive officer and president of Sumitomo Corp. Global Research Co., said from Tokyo. Uncertainty about “the European currency, uncertainty about the sterling pound, all these things point to the direction that gold is going to be favoured.”

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