Gold surged above $1,200 an ounce for the first time since June, extending a rally that’s made the metal the best performing commodity this year, as a global share rout spurs haven demand.
Bullion for immediate delivery gained as much as 0.4 percent to $1,193.53, and traded at $1,191.02 at 8:16 a.m. in Singapore, according to Bloomberg generic pricing. On Monday, the metal jumped to $1,200.97, the highest since June 22, as producers’ shares rallied.
Gold has advanced 12 percent this year on rising concern that the global economy is losing steam, with global equity markets in retreat and investors cutting bets on higher U.S. interest rates. Shares in Asia fell on Tuesday following a drop in U.S. equities that pushed the Standard & Poor’s 500 Index to a 22-month closing low.
The global slowdown has increased speculation that U.S. growth will cool enough to force Federal Reserve policy makers to wait longer before raising rates again. The prospect of delays has sent the dollar lower and gave metals a boost as alternative investments. Bullion holdings in exchange-traded products have climbed for 15 consecutive days, the longest run since September 2012, according to data compiled by Bloomberg.
Since the start of the year, investors added $2.6 billion to U.S. exchange-traded funds linked to precious metals, according to data compiled by Bloomberg. That follows a withdrawal of $2.7 billion in 2015, when bullion posted a third annual loss.