25-10-2018 04:30 PM
Gold prices climbed a little high on Thursday morning in Asia, balancing around a three-month high earlier in the week. The prices climbedas Asian equity markets fell after a sell-off on Wall Street.
The U.S. stock markets closed with a fall Wednesday evening, with the S&P 500 falling 3.09% and Nasdaq dropping 4.43%. The tumble encouraged Asian markets to drop Thursday morning, as China’s Shanghai Composite dropped 1.63% and Shenzhen Component dove down 1.99%. Hong Kong’s Hang Seng Index dropped 1.86%. Japan’s Nikkei 225 plummeted 2.96%, while South Korea’s KOSPI lost 2.21%.
The current sell-off is liable to drive up the demand for safe haven assets, specifically the valuable yellow metals.
Demand is also impacted by geopolitical worries, led by Saudi Arabia’s role in the murder of a journalist and Italy’s budget issue.
The de-facto leader of Saudi Arabia, Crown Prince Mohammed bin Salman, Wednesday during an investment conference in Riyadh, condemned the murder of Washington Post columnist Jamal Khashoggi as a “heinous crime.”
He also added - “The crime was really painful to [the] Saudis, and I believe it is painful to every human in the world. It is a heinous crime that cannot be justified,”
Those remarks came after Turkish President Recep Tayyip Erdogan publicized details on the Saudi timeline in the murder of Khashoggi on Sunday after the European Commission discarded Italy’s budget on Tuesday and asked its member state to revise it, Italy’s Prime Minister Giuseppe Conte met with Russian President Vladimir Putin in Moscow on Wednesday.