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Evergrande woes weigh on markets

The gold price has strengthened a little as investors eye major China property developer Evergrande’s debt woes.
Evergrande woes weigh on markets Evergrande woes weigh on markets Evergrande woes weigh on markets Evergrande woes weigh on markets Evergrande woes weigh on markets

Barrick Gold, whose assets include Bulyanhulu in Tanzania, was among the market risers

Staff reporter

"The question asked is whether Evergrande [will] decide to fully liquidate or restructure?" Pepperstone head of research Chris Weston said.

"This could have an effect on contagion risk and push markets into a new volatility regime."

Gold was up more than US$10 an ounce from this time yesterday to $1,764/oz on the spot market.

Meanwhile base metals fell on the London Metal Exchange, where copper lost 2.77% to $9,049.15 per tonne.

"The bearish macro takes hold - a mix of Evergrande and wider onshore property concerns and the effect that has on Chinese growth," Marex's Al Munro said from the LME desk.

Iron ore has slid further, to $90.90/t for Australian 62% fines, according to MySteel.

Copper producers Freeport-McMoRan and First Quantum Minerals both lost more than 5.6%, in New York and Toronto respectively.

Diversified Anglo American fell 4.65% in London while Barrick Gold gained 2% in Toronto.