Gold holds biggest gain since October as investors seek haven
Now Reading
Gold holds biggest gain since October as investors seek haven

Gold holds biggest gain since October as investors seek haven

Bullion’s appeal as a store of value is being burnished by risk aversion in markets and a surge in inflation worldwide

Gold was steady after surging on Friday in its biggest advance in almost four months, as geopolitical tensions over Ukraine boost demand for the haven asset.

Bullion’s appeal as a store of value is being burnished by risk aversion in markets and a surge in inflation worldwide, even as the Federal Reserve gears up to raise interest rates. The yield on 10-year Treasuries ticked up Monday after tumbling on Friday from a 2019 high.

Markets are also watching oil’s surge toward $100 a barrel for the first time since 2014, which is threatening to deal a double-blow to the world economy by further denting growth prospects and driving up inflation. Data last week showed US consumer prices surged more than expected in January, sending the annual inflation rate to a fresh four-decade high.

“Risk-off sentiment and the drop in real yields should help gold but a rising dollar may thwart further gains,” said Nicholas Frappell, global general manager at Sydney-based ABC Bullion. The advance in crude oil could add to concerns over inflation and growth, which will likely boost gold further, he said.

Spot gold was little changed at $1,858.85 an ounce as of 8.31am in Singapore after surging 1.8 per cent on Friday, the most since October 13. The Bloomberg Dollar Spot Index edged lower after rising 0.2 per cent Friday.

Silver, palladium and platinum all advanced.

You might also like

© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top