Gold climbed past the $1,300 mark for first time in five months
Gold climbed past $1,300 an ounce on Wednesday, its highest level since August last year, on a weaker dollar and global growth worries pushing investors to seek havens.
However once two European Central Bank (ECB) officials said that policy makers would propose purchasing 50 billion euros in assets per month through the end of 2016, gold lost momentum.
The precious metal is having a good year. It has gained almost 10% in the last three weeks as the euro has fallen to an 11-year low against the dollar and the Swiss central bank abandoned the franc’s peg against the single-market currency.
Spot gold hit a session high of $1,303.25 in early morning but dropped 0.6% to $1,287.80 at 10:50 a.m. in New York.
Bullion safe-haven appeal has increased in the past weeks fuelled by uncertainties in Europe. At the same time, China’s economic growth is slowing to its lowest pace in more than two decades as the world’s largest gold consumer reaches the limits of its credit-fuelled, export-led expansion and tries to avoid a hard landing.