- Gold jumped 2.3 percent to a six-week high yesterday as sharp falls on stock markets globally led to renewed demand for gold as a haven.
- Today’s AM fix was USD 1,228.25, EUR 991.88 and GBP 783.82 per ounce.
- Yesterday’s AM fix was USD 1,206.50, EUR 975.98 and GBP 770.98 per ounce.
- Spot gold rose $24.60 or 2.2 percent to $1,229.60 per ounce yesterday and silver surged $0.66 or nearly 5 percent to $17.04 per ounce as renewed risk aversion leads to a flight to quality.
Gold in EUR - 1 Year (Thomson Reuters)
Gold in Singapore inched marginally lower today and that weakness continued in London trading. Gold remains near its seven-week high hit yesterday. A small rebound in equity markets and lower crude prices may have offset the impact of a weaker dollar.
Spot gold was down 0.3% at $1,229.90 an ounce in late trading in London The metal had risen to $1,238.20 yesterday, its highest since October 23.
Since November 7, gold has climbed nearly 10% from a four-year low. Japan’s massive QE experiment, China’s stimulus programme and signs that the ECB will increase money supply are again heightening gold’s appeal as a store of value.
Ultra loose monetary policies are set to continue despite the constant threat that the Fed may increase interest rates. As policy makers try to revive economies, major central banks will together add almost three times more liquidity next year than they did in 2014, according to Credit Suisse Group AG, as reported by Bloomberg.