Gold hits 12-week high

The Pak Banker - - MARKETS/SPORTS -

LON­DON: Gold ral­lied to its high­est in nearly 12 weeks on Tues­day as a fresh rout in world stocks and a slide in oil prices bat­tered ap­petite for risk, send­ing in­vestors flee­ing to al­ter­na­tive as­sets. Gold hit a peak of $1,117.60 an ounce, its strong­est since Novem­ber 4. The metal was sup­ported by tech­ni­cal sig­nals af­ter clos­ing on Mon­day above its 100-day mov­ing av­er­age, a firm line of re­sis­tance ear­lier this year. Spot gold gained 0.5 per cent to $1,113.41 an ounce at 1030GMT, while US gold fu­tures for Fe­bru­ary de­liv­ery were up 0.8 per cent at $1,113.80. Gold has risen five per cent in Jan­uary as con­cerns over China and global growth hurt eq­ui­ties and in­dus­trial com­modi­ties, while a sup­ply glut knocked oil prices 18 per cent lower.

"As long as the Chi­nese stock mar­ket con­tin­ues its down­ward push, gold will con­tinue ben­e­fit­ing," Natixis an­a­lyst Bernard Dah­dah said. "It is cre­at­ing a cli­mate of global un­cer­tainty." Among other pre­cious me­tals, plat­inum was up 0.9 per cent at $866.74 an ounce, well off last week's seven-year trough of $806.31. Plat­inum is fore­cast to av­er­age less than $1,000 an ounce in 2016 for the first time in more than a decade as global growth con­cerns and de­mand fall­out from the Volk­swa­gen scan­dal grip the mar­ket, a Reuters poll showed. Pal­la­dium was up 0.8 per cent at $493.90 while sil­ver rose 1.1 per cent to $14.39.

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