Gold Heads for Biggest Monthly Gain Since 2012 on Haven DemandRanjeetha Pakiam
Gold rose for a fourth day to head for the biggest monthly advance in four years on mounting concern over a global slowdown, with prices advancing even as China’s central bank sought to reassure investors about the outlook for Asia’s top economy.
Bullion for immediate delivery climbed as much as 0.6 percent to $1,240.47 an ounce and traded at $1,237.20 at 3:47 p.m. in Singapore, according to Bloomberg generic pricing. It’s up 11 percent this month, the most since January 2012, as investor holdings surged.
Gold has rallied in 2016 after three straight years of losses as global shares fell, oil markets gyrated and traders reduced odds on higher interest rates in the U.S., boosting bullion’s appeal as a store of value. The rally has been buttressed by investor concerns about further yuan devaluation amid China’s slowdown. The economy remains strong and its quality is improving, People’s Bank of China Governor Zhou Xiaochuan said on Friday.
“It’s just pure risk and fear,” that’s driving the rally, Wayne Gordon, executive director for commodities and forex at UBS Wealth Management, said by phone. “People are unduly worried about a sizable depreciation of the Chinese yuan, people are concerned about European credit and people are worried about a U.S. recession.”
- San Francisco Federal Reserve President John Williams said Thursday that he tends to be “less concerned about China’s growth than many people” and he sees no sign of a looming recession.
- Holdings in gold-backed exchange-traded products rose 2.4 metric tons to 1,678.6 tons as of Thursday, the highest in a year, data compiled by Bloomberg show.
- Spot silver was 0.1 percent lower, while platinum fell 0.6 percent and palladium dropped 0.8 percent.