Asian stocks trade mixed amid rally in gold prices

  • Asian stocks are struggling for direction, possibly due to caution ahead of next week's Fed meeting. 
  • Gold is trading at the highest level since June 7.

Asian stocks are lacking a clear directional bias this Friday morning amid rally in gold – a classic safe haven asset.

As of writing, Japan’s Nikkei is up 0.27% at 21,079 and Australia’s S&P/ASX 200 is flat lined at 6,548.

Stocks in New Zealand, Hong Kong, and South Korea are flashing red. Meanwhile, the Shanghai Composite Index is currently trading at 2,906, representing 0.14% losses on the day.

The mixed action could be due to caution ahead of next week’s FOMC meeting. The markets have already priced for three rate cuts this year and hopes that the Fed would press the easing button to support the slowing domestic and global economy has boded well for the US stocks.

For instance, the S&P 500 is up 5% on a month-to-date basis.

The likes of Goldman Sachs, however, believe the markets have overpriced Fed rate cuts and the central bank will keep rates unchanged for the rest of the year.

While the Asian equities are largely dithering either side of the flat, gold is gaining altitude. The hard currency is currently trading at $1,348 per Oz, the highest since June 7, having charted a higher low at $1,320 earlier this week.

Further, the major European equity index futures are pointing to a flat open. Currently, the futures on Germany’s DAX and France’s CAC are trading largely unchanged on thee day. Meanwhile, UK’s FTSE is reporting a 0.20% gain at press time.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more