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Gold Eyes Longest Winning Run

Gold Eyes Longest Winning RunGold Eyes Longest Winning Run

Gold edged up to near its highest since June on Tuesday, as uncertainty over global growth that has hammered stocks puts the precious metal on course for its longest rally since 2011, CNBC reported.

Tuesday would mark gold’s eighth straight day of gains as investors sought safe havens in the face of instability in other financial markets, although liquidity was slow in Asia with China shut for a week-long Lunar New Year holiday.

Spot gold was up 0.2% at $1,192.57 an ounce. The precious metal rose as high as $1,200.60 on Monday, its strongest since June 22 last year.

If gold sustains its gains later on Tuesday, it would be its longest rally since an 11-day run in July 2011.

“While it’s quite clear that one of the drivers here is a weaker US dollar, it does appear that risk appetites are diminishing and that of course means more demand for gold,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“It’s not impossible we could see another touch of $1,200, some consolidation and then potentially a move higher if current conditions prevail.”

Bullion gained 5% last week, its biggest such increase since July 2013, boosting gold bulls’ expectations that the price can go higher as global headwinds could make it tough for the US Federal Reserve to raise interest rates this year.

US gold for April delivery was off 0.4% at $1,193.30 an ounce.

Underlining gold’s rising draw, holdings in eight major gold exchange-traded funds rose to 43.3 million ounces on Friday, the highest since July 2015.

Financialtribune.com