Gold shines as Chinese equities fall 6.5%
Gold surges as uncertainty resurfaces: Gold prices rallied by 2% to US$1,253/oz on Wednesday as a drop in oil prices dragged equities lower. However, once oil prices recovered, the yellow metal reversed course and gave up most of the gains. In early trading on Thursday, Gold once again saw the safe haven bid materialise as Chinese equities plunged lower by 6.5%. Many analysts feel the metal will remain well supported given the uncertainty about global markets.
Oil gives up gains in volatile trading: Oil prices fell for most of the day on Wednesday but managed to rally to US$32.40/bbl after inventory data was released, which showed while crude stockpiles rose by 3.5mnbbl to a new record, gasoline demand surprisingly rose. In early trading on Thursday, the market retreated once again due to weak Chinese markets.