- ‘We all have to be worried’ about China’s debt: BlackRock
- Soros, Druckenmiller bought stakes last quarter in Barrick
Gold gained a third straight session as mounting concerns over China’s debt boosted demand for the metal as a store of value. Miners including Barrick Gold Corp. rose after billionaire George Soros joined a slew of investors piling into bullion.
BlackRock Inc.’s Laurence D. Fink, who oversees the world’s largest money manager, said that “we all have to be worried” about China’s debt amid slowing growth. A filing Monday showed Soros and investor Stanley Druckenmiller bought stakes last quarter in Barrick, the world’s largest bullion producer.
Bullion is benefiting this year from concern that global economic growth will falter, damping the outlook for higher interest rates and underpinning demand for haven assets. The gains are carrying through to gold miners, with a gauge of 14 companies tracked by Bloomberg Intelligence doubling in 2016.
“What’s fueling today’s rally is a lot of discussion of China debt,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. With the Soros filing, “a lot of people who were gold buyers are a little more brave today after learning about that.”
Gold futures for June delivery gained 0.2 percent to settle at $1,276.90 an ounce at 1:41 p.m. on the Comex in New York.
The BI Global Senior Gold Valuation Peer Group index jumped 1.1 percent on Tuesday, led by gains in Yamana Gold Inc. and Toronto-based Barrick.
In other metals:
- Silver futures for July delivery gained 0.6 percent to settle at $17.25 an ounce on the Comex.
- On the New York Mercantile Exchange, platinum advanced and palladium dropped.