Gold is dusting off its credentials as the go-to commodity in troubled times and its producers are reaping the benefits.
Futures rallied above $1,100 an ounce to a two-month high, after a sell-off in Chinese shares forced the country’s stock exchanges to shut for a second time this week, spurring demand for a haven. Global markets are facing a crisis and investors need to be very cautious, billionaire George Soros said. Shares of bullion miners including Barrick Gold Corp. are climbing, even as the 80-member Bloomberg World Mining Index slides to the lowest in more than a decade.
After posting three straight annual declines, bullion is topping other commodities this month amid weakness in China’s currency and stock market and geopolitical tensions in the Middle East and North Korea. Soros told a forum in Colombo, Sri Lanka, that China is struggling to find a new growth model and its currency devaluation is transferring problems to the rest of the world.
Gold futures for delivery in February gained 1.5 percent to settle at $1,107.80 at 1:48 p.m. on the Comex in New York, after reaching $1,109.30, the highest for a most-active contract since Nov. 6. Prices are up for a fifth session, the longest run since October.
Silver futures also gained on the Comex. Platinum rose on the New York Mercantile Exchange, while palladium fell.