Gold price at 15-week high on concerns about global economy
London (Oct 14) Gold was trading above $1,175/oz Wednesday morning, a 15-week high, on growing concerns about the global economy after comments from US Federal Reserve board member Daniel Tarullo against the need for an interest rate rise this year.
Data Tuesday showed Chinese imports down 20% in September, while German investor confidence was reported at its lowest level for a year by the ZEW Economic Institute.
"[Global economic concerns], coupled with the fall in global stock markets, is driving up risk aversion, which is appearing to benefit gold as a safe haven," Commerzbank analysts said in a note Wednesday.
A US interest rate rise this year -- which should temper gold demand as a non-yielding asset -- has been ruled out by most analysts recently.
Meanwhile, investment bank Macquarie released the results of its survey on macroeconomic topics, taken at the beginning of London Metal Exchange week in London.
"In 2015, our delegates were much more bearish about future Chinese growth than they were in 2014," Macquarie said in a note.
Half of the 400 delegates questioned expected world growth to be weaker in 2016, and only 12% believed it would pick up, according to the bank.
The London Bullion Market Association Gold Price settled at $1,173.70/oz Wednesday morning, up $8.50/oz on the previous session to its highest level since June 29.