Gold demand ROCKETS as investors seek ‘safe haven’
INVESTORS put their faith in gold as they sought a “safe haven” after markets around the world tumbled.
By TOM NELLIST
Express.co.uk
Sat, Oct 27, 2018
Stock market traders backed bullion as they tried to recover losses from riskier investments putting the metal at a three-month high.
Spot gold has seen four weeks of gains as it reached 0.2 percent to $1,234.35 an announce having earlier gained almost one percent, reported CNBC.
The figure is the highest the asset has been at since mid-July while US gold futures settled at $1,235.80 an ounce.
It was up $3.40 for four weeks of gains, the longest streak since January.
George Gero, managing director of RBC Wealth Management, told the business news website the reason behind the gains was down to investors needing a “safe haven” after a marked global downturn in stocks.
He said: “With the extreme slide in stocks, gold became a temporary safe haven.
“But event driven rallies don’t last long and the metal pared gains as stock gave up some losses.
“Bonds have also become safe haven with stocks getting sold off.
“The dollar is still pretty high, which is a headwind for gold as it makes the metal expensive in major consumers like India.”
