WorldThe price of gold on the rise with increasing fears about the...

The price of gold on the rise with increasing fears about the crisis of the Chinese group Evergrande


AA / Istanbul

Gold prices rose during trading on Friday as investors were reluctant to take risks amid growing fears over the crisis by Chinese real estate giant Evergrande. Precious metal prices have ignored advances in the dollar, which generally tend to push gold prices down.

As of 08:35 GMT, the price of gold in spot trading rose 0.73%, or $ 12.67, to trade at $ 1,755.62 an ounce.

US futures contracts rose 0.33%, or $ 5.85, to $ 1,755.65 an ounce.

The rise in gold prices has nevertheless taken place despite the progress of the dollar, which generally increases the cost of the precious metal, for holders of currencies other than the greenback.

Contracts on the dollar index, which measure the performance of the US currency against six major competing currencies, rose 0.12% to 93.142 points.

Gold prices have benefited from their safe-haven status as investors turn to value preservation tools, thereby avoiding high-risk assets, pending a clarification of the fate of the Evergrande group, which is currently riddled with debt.

Cumulative interest on two bonds that the Evergrande group had declared to be able to honor, but, until the morning of this Friday, no bond had received its payment.

The Evergrande group is owed around $ 300 billion, and there are fears its crisis could spread to other markets, heralding a series of collapses for major banks and corporations around the world, to the image of the mortgage crisis in the United States in 2008.

Gold prices have come under pressure over the past two days, due to the rising dollar, following signals from the Federal Reserve (the US central bank) which should “soon” begin. a phase of slowing down its vast program of buying bonds, followed by an increase in interest rates.

But the effects of the US Federal Reserve’s hints on gold prices have started to fade, in the absence of specific dates for the Fed’s monetary policy tightening, so investor attention turned to other factors, including in particular the risks generated by the crisis of the Chinese group Evergrande.

* Translated from Arabic by Mounir Bennour

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