Gold rose to a three-month high as investors continue to seek alternative assets amid turbulence in financial markets. Asian stocks dropped and oil resumed its selloff.
Bullion for immediate delivery gained as much as 0.2 percent to $1,130.50 an ounce, the highest level since Nov. 3, and traded at $1,128.33 at 9:11 a.m. in Singapore, according to Bloomberg generic pricing.
Gold is extending its 2016 rally, underpinned by demand for haven assets and rising bets that the U.S. Federal Reserve will hold off on raising interest rates further. Investors added to gold holdings through exchange-traded funds for a 10th straight day, as of Jan. 29.
Fed Vice Chairman Stanley Fischer said Monday it’s difficult to gauge the impact on the U.S. economy from recent market turbulence and uncertainty over China, leaving policy makers undecided about what to do next.
Source : Bloomberg