Gold prices were on track to their biggest one-day rally in more than two months early on Thursday as disappointing US economic data further eroded investor confidence, prompting a surge of interest in perceived safe-haven assets. Gold prices hit a four-week high amid a strong dollar and two days of sharp equity market losses after the Federal Reserve downgraded its economic outlook and said it needed to buy government debt to boost a flagging economy.
On Thursday, gold accelerated gains to rise about $10 in the minutes after data showed the number of US workers filing new claims for unemployment insurance unexpectedly rose last week to a near six-month high, a fresh signal of a weak jobs market. Gold was at $1,213.45 an ounce by 11:52 am EDT (1552 GMT), against $1,197.00 late in New York on Wednesday, still nearly 5 percent below late June's lifetime high around $1,264. Gold for December delivery on COMEX was up $16.10, or 1.3 percent, at $1,215.30 an ounce. It was December's biggest one-day percentage gain since June 7.
"The recent sell-off has left speculative long positions in gold oversold relative to US real interest rates, which we believe has set the stage for a rally to our six-month gold price target of $1,300/oz," Goldman said. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings rose for the first time in a week.
Silver benefited from gold's rise, and was at $18.01 an ounce, up from $17.84 the day before. Spot platinum was at $1,522.50 an ounce, down around 1.5 percent from the levels late in New York on Wednesday, but up from an intraday low of $1,500.75. Palladium was at $466.75, versus $477.00 Wednesday. Asian traders said earlier the drop in PGM prices was a knee-jerk reaction to declines in equity markets.
Comments
Comments are closed.