Gold Rises Thanks to Safe Haven Appeal

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.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza