Gold hits 12-week high, on track for best month in a year
Gold was again up Tuesday in New York, hitting a 12-week high, as the precious metal seems to have regained — at least for now — its safe haven status amid recent market turmoil.
February Comex gold was last up $10.5 at $1,118.40 an ounce. So far this year, the yellow metal has surged 5% and if the upward trend continues it will make of January the best month for gold prices in a year.
Bullion prices are also set for a gradual recovery this year as demand increases in Asia and mine production contracts, analysts at Thomson Reuters GFMS said Tuesday. The group expects gold demand to grow by 5% this year, the BullionDesk reported.
“Once it becomes clear that the gold price is on the road to recovery, we are likely to see a rebound in investor interest from key Asian markets, particularly if concerns about the emerging market slowdown and weakening currencies persist,” GFMS said.
Despite global market volatility, gold’s performance has been limited, according to David Govett, head of precious metals at Marex Spectron. He told the Wall Street Journal Monday that bullion’s gains have been modest compared with a 16% decline in Brent crude and an 8% decline in the Stoxx Europe 600 index.
Other precious metals also climbed Tuesday. Platinum was up by 1.4% to $873.85 an ounce while silver gained 1.6% to $14.47.