Oct 2 (Reuters) – Gold prices rose on Tuesday as risk appetite faded Asian stocks fell, with MSCI’s broadest index of Asia-Pacific shares outside Japan declining 1 percent after a steady start, as cautious views on the global economy curbed risk sentiment.
“Prices have hovered around $1,190/oz and there is some demand from speculators and physical buyers at this level,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
“Gold was assisted by a largely stable U.S. dollar index (on Tuesday),” said National Australia Bank economist John Sharma said.
Gold has fallen about 13 percent from its April high, largely because of the stronger dollar, which has been boosted by a vibrant U.S. economy and fears of a global trade war.
“I don’t see the U.S. dollar doing much ahead of Friday’s non-farm payroll data. I look for that key print to drive the pace of the U.S. Federal Reserve repricing rates higher, which I think will boost the dollar’s appeal,” said Stephen Innes, APAC trading head at OANDA in Singapore.
