- Special Pages
LONDON: Gold edged lower yesterday as signs of a strengthening US economy encouraged investors to take riskier bets, but speculation that central banks will stick to easy money policies in the near future put a floor under prices.
Gold prices have held in a narrow range for four sessions, as market participants question whether they should hold gold as a haven against easy money policies at a time when encouraging US data and growing risk appetite have propelled stock markets to their highest levels since the 2008 financial crisis.
“Investors are not really looking for safe havens at the moment,” said Eugen Weinberg, head of Commodities research at Commerzbank. “Gold as inflation protection should get more demand from investors in the second half of the year. Right now, the market participants are looking for more yield and they’re finding it in other asset classes like equities,” he said.
Spot gold was down 0.1 percent at $1,581.86 an ounce at 1312 GMT, while US gold futures for April delivery were up 0.4 percent to $1,581.50.
Recent strong US data, including a better-than-expected jobs report on Wednesday, have brightened the mood on the markets and lifted the Dow Jones Industrial index over the past two sessions. Official US non-farm payroll figures due today will be watched for further signs of recovery in the world’s leading economy. Reuters