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Tuesday, November 30, 2021

Gold steadies as political turmoil in Italy rocks financial markets  

Gold steadies as political turmoil in Italy rocks financial markets  LONDON: Gold steadied on Tuesday as traders weighed a buoyant dollar against a deepening political crisis in Italy that provoked a second day of heavy selling on European financial markets.

Italy’s president set the country on a path to early elections on Monday, appointing a former International Monetary Fund official as interim prime minister with the task of planning for snap polls and passing the next budget.

Investors fear repeat elections – which could take place as soon as August – might serve as a quasi-referendum on Italy’s role in the European Union and euro zone and strengthen the country’s eurosceptic parties even further.

Gold, seen as a safe have, often gains from political turmoil.

But keeping the metal’s upside in check, the events in Italy pushed the dollar to a 10-month high versus the euro, making dollar-priced gold costlier for non-US investors.

Copyright Reuters, 2018
 

Source: Brecorder

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