Gold prices headed for the biggest advance in more than a week as declining global equity markets boosted demand for haven assets.
The MSCI All-Country World Index of shares retreated as much as 0.8 percent today. A Bloomberg customized gauge tracking 20 emerging-market currencies dropped 3 percent in January, the worst start to year since 2009. Central banks from Turkey to South Africa have raised interest rates in a bid to defend their currencies. Gold extended gains after a report signaled slower U.S. manufacturing.
Prices “are being boosted by some more safe-haven buying interest amid a still-uncertain market place,” Jim Wyckoff, a senior analyst at Kitco Metals Inc., a research company in Montreal, said in a report. “The past two weeks have seen keener risk aversion in the market.”
Gold futures for April delivery advanced 1.8 percent to $1,261.60 an ounce at 10:15 a.m. on the Comex in New York., heading for the biggest advance since Jan. 23.