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Gold Above $1,300

Gold Above $1,300 Gold Above $1,300

After three years of being scorned, gold’s making a powerful comeback. Prices have pushed above $1,300 an ounce on speculation that the US central bank will be slow to tighten policy further, bolstering the metal’s appeal as the dollar sagged. Bullion for immediate delivery traded at $1,290.28 an ounce in Singapore from $1,291.55 on Monday, when it rose to $1,303.82, according to Bloomberg generic pricing. It’s gained 22% this year, rising to the highest since January 2015, as a gauge of the dollar lost 6.3%. Investors have piled back into bullion in 2016 after prices sank for three straight years as risks to the global economy prompted the Federal Reserve to signal it will take a slower approach to rate increases. While the metal’s appeal has also been boosted by the spread of negative interest rates in Europe and Japan, gold’s latest push higher came after the Bank of Japan refrained from adding stimulus last week, which hurt the dollar. The spike above $1,300 on Monday came as many financial markets in Asia and Europe were closed.

 

Financialtribune.com