Gold price hits 12-week high
London (Jan 26) 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.