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Gold Rises on Safe Haven and Fed Anticipation

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Gold advanced in London and New York on speculation a global rout of emerging markets will spur demand for precious metals as a safe haven.

Turkey’s financial markets have plunged since news of a corruption scandal broke last month. That coincided with a flow of money out of emerging economies that weakened currencies from Brazil to South Africa. Gold fell earlier today amid expectations the Federal Reserve will cut stimulus more today.

“Gold should be in demand as long as the turmoil persists,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail today. “That’s why gold has recovered its early losses.”

Gold for immediate delivery rose 0.2 percent to $1,259.81 an ounce by 12:37 p.m. in London, after falling as much as 0.6 percent. April futures climbed 0.7 percent to $1,259.40 an ounce on the Comex in New York. Trading on Comex was 62 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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