Gold Rises After Equities and Emerging Markets Drop

Gold climbed to a two-month high in New York, heading for the longest weekly rally since September 2012, as declines in European equities spurred demand for the metal as an alternative investment.

European stocks declined as much as 1.7 percent. Gold futures jumped 1.9 percent yesterday, the most since Dec. 10, as data showed the number of Americans continuing to receive jobless benefits unexpectedly increased. Bullion advanced 1.3 percent this week for a fifth weekly increase.

Fed policy makers meet Jan. 28-29, after deciding in December to cut monthly bond buying as the economy improved, and will end the program this year, according to the median forecasts of economists in a Bloomberg survey. Gold rose as much as 7.8 percent from a six-month low set Dec. 31 on signs of increased physical demand, particularly in China.

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