Business News Asia
Gold prices closed higher last night (Sept. 24) as China cracks down on the cryptocurrency industry, including the unclear situation of China’s Evergrande Company. Given the situation in China, investors tend to put some safety in the portfolio.
Gold futures rose 0.11% or $1.9 to close at $1,751.70/ounce.
Silver futures fell 1.12%, or 25.40 cents, to $22.43/ounce.
Platinum futures fell 1.72% or $17.10 to close at $979.90/ounce.
Palladium futures fell 1.1% or $20.70 to close at $1,951.10/ounce.
Gold prices were driven by investors buying gold as a safe haven. Following China’s crackdown on the cryptocurrency industry. According to the People’s Bank of China, cryptocurrencies are illegal currencies and have no presence in the country. China has already started placing its own digital currency and sees other digital currencies as competition. Cryptocurrencies have the charm of not being subject to regulation.
At the moment, there is still little concern about the situation around Evergrande. The company had failed to settle a bond payment this week. However, before a default on the bond can be declared, a period of 30 days must expire. According to the latest news, the Beijing government has already stepped in to ensure that Evergrande’s remaining capital is used to complete open construction projects. This would also mean that outstanding bond payments will not be settled or at least are not planned to be settled.
The Chinese central bank has already started to provide liquidity to the financial market this week.
As a result, there was a rush to physical gold dealers, especially in Asia. Possibly the people in Asia see the danger and put themselves a hedge. Indian gold exports from Switzerland have increased rapidly in August compared to last year.