Safety found in palladium, gold and yen
Gold, palladium and the Japanese yen were among the few asset classes to gain amid yesterday's regional stock market rout.
The yen rose to a two-week high against the US dollar on investor concerns that stocks will extend their losses after Friday's sell-down.
In Tokyo, the yen climbed to as high as 103.25 against the dollar, its strongest since April 3. It rose further to close at 104.14 to the dollar in London trade.
Gold for immediate delivery rose as much as US$2.40, or 0.9 per cent, to $285 an ounce in Asia. However, it ended in London at $281.20-$282.20.
Palladium surged more than 4 per cent as investors, spooked by a slump in stock prices in the United States, bought precious metals as a safer investment, traders said. The metal ended in London at $576-$591 an ounce.
'With the collapse in stocks, hot money is slowly going back to precious metals,' a trader said. 'Money will flow into precious metals in the next three to four months.'