Investing.com – Gold hit 3-month highs on Monday, continuing its ascent into a third week and reasserting itself as the hedge of choice against a cocktail of geopolitical tensions, tumbling equity markets and global macro uncertainties.
Just two months back, both spot and futures of bullion were falling vs. the dollar almost each day as the U.S. dollar benefited from early signs of the Federal Reserve’s preference for a higher-for-longer interest rate plan.
But after the Fed’s third rate hike for 2018 in September and adoption of increasingly hawkish language, U.S. bond yields spiked on fears of a global economic slowdown, turning the dollar to gold’s advantage.
That trend resumed on Monday with December gold futures on the U.S. COMEX exchange settling up $8.30, or 0.7%, at $1,230.30 per ounce. The peak for the day was a July 15 high of $1,236.90.