Gold hits new 3-month high

The Pak Banker - - MARKETS/SPORTS -

LON­DON: Gold touched a new three-month high on Mon­day as con­cerns about the global econ­omy and a fur­ther drop in the oil price pushed in­vestors to­wards safe­haven as­sets. Weak Chi­nese man­u­fac­tur­ing data on Mon­day un­der­scored the chal­lenges for the world econ­omy and in­creased volatil­ity in oil and other as­sets is sup­port­ing gold. "In the near term gold is find­ing some sup­port in the dovish tone from cen­tral banks last week, no­tably the Fed and the Bank of Ja­pan," said Jens Ped­er­sen, se­nior an­a­lyst at Danske Bank. The Bank of Ja­pan's de­ci­sion last week to in­tro­duce neg­a­tive in­ter­est rates helped lift the pre­cious metal and it could see more gains as some cen­tral banks may be forced into eas­ing mon­e­tary pol­icy fur­ther this year to spur growth. Spot gold touched $1,130.11 an ounce, its strong­est since Novem­ber 3, and was trad­ing down 0.3 per cent at $1,125.64 by 1006 GMT. A break above $1,136 could lift gold to­wards $1,157, a level reached in late Oc­to­ber, said Sco­ti­aMo­catta tech­ni­cal an­a­lysts. US gold for April de­liv­ery was off 0.2 per cent at $1,126 an ounce. Gold is typ­i­cally the as­set of choice in times of un­cer­tainty. It posted its best monthly jump in a year in Jan­uary, and has gained six per cent so far in 2016, af­ter fall­ing 10.4 per cent last year.

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