Gold makes new six month high
Duncan Richardson, News Editor
14 Mar 2014, 10:46 a.m.
Gold has just hit a new 6 month high and is posed to make gains for the six consecutive week, as the price is driven higher by rising tensions between the U.S. and Russia over Ukraine and concern the Chinese economy is unravelling.
Gold is up 3% this week as investors exit equities and other risk assets and divert capital into safe haven assets such as gold.
Exchange traded products have been big winners with many experiencing positive inflows following a disastrous 2013. The world’s largest gold backed exchange traded product the SPDR Gold trust increased its holdings by 2.10 to 813 tons However, physical demand from retail customers in Asia has slowed as prices and premiums have risen.
The political instability in the Ukraine is supporting the gold price with neither Russia or the U.S. looking like they are going to back down anytime soon.