Gold hits new high in market


Gold has hit a three month high as investors flock to gold backed funds in the largest numbers in three years.

The resurgence of gold is highlighting the metal regaining its role as a safe haven for investors and operators.

It leapt to a three month high yesterday as the oil price continued to slump.

By February the metal has taken the position of best performing commodity of 2016, as it has lifted by more than six per cent over the past month.

The metal hit spot prices of US$1131.40 per ounce, the highest point since early November last year.

At the same time assets in exchange traded products have leapt nearly five per cent.

In the meantime gold-backed ETPs rose 12.8 tonnes earlier this week, according to Bloomberg.

Much of this is driven by the oil price, which sits at the low end of the market at around US$30, and ongoing economic volatility from China.

“Investor sentiment remains broadly risk-off, which is positive for gold,” Jonathan Butler, a precious metals strategist at Mitsubishi Corporation in London, told Bloomberg.