Gold pushed to a record, while NZ shares fall

The S&P/NZX 50 Index declined 50.64 points, or 0.4 percent, to 11,585.62. Within the index, 31 stocks fell, 12 rose, and seven were unchanged. Turnover was $121.1 million.

Gold prices hit a record US$1,943.92 per ounce, and were recently at US$1,934/oz, as investors piled into the precious metal as the tit-for-tat consulate closures between the US and China last week kept traders on edge. Rising numbers of new covid-19 cases in some countries already had investors nervous about the severity of the recession facing the world.

Global market strategist Stephen Innes said this “combination of toxic factors” was weighing on equity market sentiment and causing the gold price to soar.

Matthew Goodson, a managing director at Salt Funds Management, said trading on the local market was quiet as traders waited for companies to report the next round of earnings.