Gold price shoots higher again
The gold price on Tuesday built on strong gains on Friday in New York, jumping as much as $31 and scaling $1,400 an ounce for the first time since early June.
By lunch-time the yellow metal was trading not far off its highs at $1,419.70, up more than $26, after earlier touching $1,424 an ounce, the highest intra-day level since June 6.
Gold futures have now rallied 20% from the intra-day low of $1,182.60 an ounce on hit on June 28.
In a research note on Tuesday, Germany’s Commerzbank said “the fact that investment demand has picked up again somewhat of late, coupled with the escalating Syrian conflict, could see the upswing continue.”
While escalating tensions in the Middle-East certainly boosts gold’s safe have reputation, the dramatic change in sentiment in the gold market is most visible in the gold-backed ETF market.
During the first seven months of this year outflows from funds totaled a staggering 670 tonnes.
After burning a $60 billion hole in gold investors’ pockets, the wave of ETF liquidation come to a halt mid-August, taking an important source of selling pressure out of the market.
- Where all the ETF sold gold ended up
- Indians continue to chase gold higher despite domestic prices equal to $1,800
- Friday rally sets up gold price breakout