Gold prices rose to their highest in more than a week yesterday, after a missile attack in Yemen over the weekend fanned geopolitical concerns and boosted the metal’s safe-haven appeal, while buying ahead of the Chinese New Year also lent support.
Spot gold was up 0,3percent at $1 560,89 per ounce by 0726 GMT, after touching its highest since January 10 at $1 562,51 earlier in the session. US gold futures were flat at $1 560,50.
“Chinese New Year is in front of us and some buying has emerged because of that,” Ajay Kedia, director at Kedia Advisory in Mumbai, said.
Iran-aligned Houthis attacked a military training camp in the Yemeni city of Marib on Saturday, killing dozens of people. Gold is considered a safe investment in times of political and economic uncertainty.
“Investors are clearly focused on the longer term dynamics, which should play in gold’s favour with low interest environment, central banks’ loosening policy to help support growth and subsequent weakness in the dollar,” ANZ analyst Daniel Hynes said. — Reuters.