Tags: gold | silver | currency | turmoil

Gold Rises Most in a Week as Currency Turmoil Spurs Haven Demand

Wednesday, 29 Jan 2014 02:29 PM

Gold futures rose the most in a week as a rout in emerging-market currencies spurred demand for the precious metal as a haven.

The South Africa Reserve Bank unexpectedly increased its benchmark interest rate today, following central banks in emerging markets from Turkey to Brazil that have tightened monetary policy to bolster their currencies. This week, a Bloomberg gauge tracking 20 emerging-market currencies fell to the lowest since April 2009.

“What we’re seeing is a bit of a safe-haven play” for gold, Bart Melek, an analyst at TD Securities in Toronto, said in a telephone interview. “We just had South Africa raise rates, and there continues to be quite a bit of worry about emerging markets. This whole proposition of global growth actually perking up is, to some degree, being put to question.”

On the Comex in New York, gold futures for April delivery climbed 0.9 percent to settle at $1,262.20 an ounce at 1:40 p.m., the biggest gain for a most-active contract since Jan. 23. Trading was 63 percent higher than the average for the past 100 days for this time, according to data compiled by Bloomberg.

“Gold should be in demand as long as the turmoil persists,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail today.

Silver futures for March delivery rose 0.3 percent to $19.552 an ounce. In January, the metal has climbed 0.9 percent, heading to the first gain in three months.

On the New York Mercantile Exchange, platinum futures for April declined 0.1 percent to $1,408.10 an ounce. The metal dropped for the fourth straight session, the longest slump in six weeks.

Palladium futures for March delivery fell 0.7 percent to $711.15 an ounce. The price declined for the fifth straight session, the longest slump in 11 weeks.

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Gold futures rose the most in a week as a rout in emerging-market currencies spurred demand for the precious metal as a haven.
gold,silver,currency,turmoil
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2014-29-29
Wednesday, 29 Jan 2014 02:29 PM
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