Gold advanced in London and New York on speculation a global rout of emerging markets will spur demand for precious metals as a safe haven.
Turkey’s financial markets have plunged since news of a corruption scandal broke last month. That coincided with a flow of money out of emerging economies that weakened currencies from Brazil to South Africa. Gold fell earlier today amid expectations the Federal Reserve will cut stimulus more today.
“Gold should be in demand as long as the turmoil persists,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail today. “That’s why gold has recovered its early losses.”
Gold for immediate delivery rose 0.2 percent to $1,259.81 an ounce by 12:37 p.m. in London, after falling as much as 0.6 percent. April futures climbed 0.7 percent to $1,259.40 an ounce on the Comex in New York. Trading on Comex was 62 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.
To contact the reporter on this story: Claudia Carpenter in London at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com