Gold advanced toward the highest level in more than six weeks as declines in the dollar and global equities boosted demand for a haven, with assets in the largest exchange-traded product rising to a one-month high.
Bullion for immediate delivery increased as much as 0.4 percent to $1,231.41 an ounce, and traded at $1,229.79 at 8:54 a.m. in Singapore, according to Bloomberg generic pricing. The metal climbed on Dec. 9 to $1,238.32, the highest level since Oct. 23, then retreated yesterday as a slump in oil prices sparked deflation concerns.
Crude prices in New York and London have plunged to five-year lows and are more than 40 percent below their 2014 peaks in June, triggering losses in global stocks as shares of energy producers tumbled. The Bloomberg Dollar Spot Index fell for a fourth day today, the longest slump since July, before the Federal Reserve meets next week to debate the timing of the first interest-rate increase in since 2006.
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.