Gold Is Rising Amid Demand For Safe Haven (Investor's Business Daily)

  • admin
  • March 26, 2015
  • Comments Off on Gold Is Rising Amid Demand For Safe Haven (Investor's Business Daily)

Gold extended its longest run of gains in more than two years as Saudi Arabia and its allies started bombing targets in Yemen, boosting demand for haven assets.
Oil rose to the highest in more than two weeks amid the violence in Yemen, Saudi Arabia’s southern neighbor in a part of the world that supplies a third of the world’s crude. Investors have historically turned to precious metals during times of escalating geopolitical tensions that threaten equity valuations.
Spot gold has advanced 4.7% in seven straight sessions of gains, the longest streak since August 2012. Prices have climbed every day since Federal Reserve policy makers signaled that they’re in no hurry to raise interest rates, weakening the dollar and raising the appeal of bullion as an alternative. The precious metal on Thursday surpassed its 100-day moving average for the first time since March 2.
“Concern about a growing conflagration on the Saudi peninsula drove gold’s haven-premium higher,” Tai Wong, the director of commodity products trading at BMO Capital Markets Corp. in New York, said in a phone interview. “Continuing weakness in the dollar is helping gold.”
Gold for immediate delivery rose 0.6% to $1,203.16 an ounce at 1:56 p.m. ET, according to Bloomberg generic pricing. The commodity touched $1,219.79, the highest since March 2.
In New York, gold futures for June delivery gained 0.6% to settle at $1,205.70 on the Comex.