Kitco News — Gold prices ended the U.S. day session modestly up and hit a three-week high Tuesday, on follow through buying from Monday’s gains. Kitco’s spot gold was last quoted up $5.00 and trading at $1,109 an ounce. Overnight Monday, the yellow metal had an extremely volatile session moving in a $25 range, as the market was surprised by a 1.9% devaluation of the Chinese yuan, said Peter Hug, Global Trading Director for Kitco Metals. China has been implementing economic and monetary measures to resuscitate its flagging economy. The move by China shook the financial world, with markets selling off. The gold market saw little reaction to the China news. ‘The global macro picture continues to deteriorate and gold is beginning to attract capital flows, dare I say, as a safe haven asset,’ Hug told Kitco News. The gold market remains positioned short and most analysts continue to remain bearish, Hug added. ‘Risk remains to the upside,’ he noted.
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