Gold hits fresh three-month high amid oil selloff
Gold prices climbed to a fresh three-month high Tuesday, underpinned by global growth concerns and as another sharp drop in the oil price pushed investors towards safe-haven assets.
In only a month, the precious metal has become the best performing commodity of the year and one of the very few to post a sizable gain in 2016.
Gold prices have climbed more than 6% this year. By comparison, stocks have had a dismal start to the year — The Dow is down more than 1,000 points, while the Nasdaq has lost 8% of its value since Jan. 4.
Spot gold hit $1,131.40 an ounce early on Tuesday, its strongest since Nov. 3, and was last down slightly at $1,127. U.S. gold for April delivery was down 0.04% at $1,127.60 an ounce.
Prices have been benefitting from a rush to safe havens amid volatility on stock markets, triggered by a slowdown in China and a meltdown in wider commodities that could be indicative of slowing global demand.
Despite global market volatility, gold’s performance has been limited, according to David Govett, head of precious metals at Marex Spectron. Last week, he said 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.
Among other precious metals, silver was up 0.1% at $14.36 an ounce, platinum was down 1% at $861.20 an ounce and palladium was down 1.2% at $496.50 an ounce.