Gold Continues To Rise After Weak US Data

Gold rose to the highest price in more than 16 weeks in New York on speculation weaker U.S. economic data and political turmoil in Ukraine increased haven demand. Silver also reached the highest since October.

Sales of previously owned U.S. homes dropped in January to the lowest level in more than a year, data showed Feb. 21. In Ukraine, lawmakers yesterday gave presidential powers to parliament speaker Oleksandr Turchynov, after ousting Viktor Yanukovych from the role as violence amid anti-government protests killed at least 82 people last week.

After slumping by the most since 1981 last year, gold rose 11 percent since the end of December and is headed for a second monthly gain as signs the U.S. economy wasn’t recovering in line with expectations boosted demand for a haven. Bullion prices rebounded this year even as the Federal Reserve continued slowing stimulus.

via Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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