- Gold has finally woken up. The price of gold jumped 2.4 per cent on Thursday – the most in nearly 2 years – in a sign of safe haven buying amid a rout in global stock markets
- The move is a sharp turnaround to gold’s recent performance
By: Henry Sanderson
Gold has finally woken up. The price of gold jumped 2.4 per cent on Thursday – the most in nearly 2 years – in a sign of safe haven buying amid a rout in global stock markets.
The move is a sharp turnaround to gold’s recent performance. Gold had fallen by 10 per cent before Thursday’s move higher, hit by a stronger dollar and rising US interest rates.
“As a stock market sell off continues gold is once again a desired destination in times of uncertainty,†Alfonso Esparza, senior market analyst at Oanda, a currency exchange, said. “The metal had lost some cache in minds of investors, but when there is no clear safe haven fonds are flowing to gold.â€
US stocks turned sharply lower in morning trading on Thursday, with the S&P 500 down 0.6 per cent at 2769.35. Shares in London and Hong Kong also fell.
Gold last traded at $1,222 a troy ounce, its highest level since July 31.
Source: https://www.ft.com/content/ca08c226-cd78-11e8-b276-b9069bde0956
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