Gold Climb As Investors Flee Stocks

Gold prices advanced by the most 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 1.6 percent today. A Bloomberg customized gauge tracking 20 emerging-market currencies dropped 3 percent in January, the worst start to a year since 2009. Central banks from Turkey to South Africa have raised interest rates in a bid to defend their currencies from weakening. 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 1.6 percent to settle at $1,259.90 an ounce at 1:41 p.m. on the Comex in New York, the biggest gain since Jan. 23.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu