Gold atop $1,300 for the first time since August
Investors are rushing back into gold, so much so that they pushed the price above $1,300 an ounce for the first time since August.
In early electronic trading on Wednesday, gold for February delivery GCG5, +0.60% gained $9.10, or 0.7%, to $1,303.20 an ounce, after settling at the highest price in five months on Tuesday — around $1,249.20 an ounce. The precious metal has gained for seven straight sessions, including Tuesday’s, and is up about 10% year to date.
March silver futures SIH5, +1.92% meanwhile, advanced 35 cents, or 2%, to $18.31 an ounce in electronic trading.
Gains for gold have been attributed to investors seeking safe havens amid ongoing troubles in Ukraine, political uncertainty in Greece, turmoil triggered by the Swiss National Bank, and some bargain hunting on the heels of depressed prices at the end of 2014.
Gold exchange-traded-funds have seen high inflows, and on Thursday and Friday saw the highest inflows on two straight days since November 2011, according to Commerzbank’s Eugen Weinberg.
The next big event for gold markets is the European Central Bank meeting, which is widely expected to result in quantitative easing. Gold’s hold on $1,300 is tentative, say some. “If the ECB’s likely stimulatory actions cause risk assets to surge higher on Thursday, demand for safe-haven assets such as gold could fall back,” said Fawad Razaqzada, technical analyst at Forex.com.
In other metals, platinum for April delivery PLJ5, +0.00% fell $1.90 to $1,284.70 an ounce, while palladium for March delivery PAH5, -0.03% advanced $2.85 to $781.60 an ounce.
High-grade copper for March delivery HGH5, -0.81% declined 2 cents, or 0.8%, to settle at $2.574 a pound.
Source: MarketWatch – Gold atop $1,300 for the first time since August
