The Daily Telegraph reports that “gold prices have reached their highest level since February on strong investment demand amid caution ahead of key US payrolls data”.
The intra-day peak of $992.55 on Friday, September 4 was the highest since February 24, 2009.
Analysts cited asset diversification by “jittery investors” and “shaky equities markets” as key drivers of the rally, with gold’s immediate move having been “largely technical, with the dollar offering little support and physical demand weakening as prices rose”.
Meanwhile, after a US employment report on Friday showed greater job losses in the private sector than expected, investors are watching for the effect on the dollar and subsequently on gold.
Standard Chartered expect the “very strong” investment demand for gold to “help drive the price higher over time”, breaking “$1,000 by the fourth quarter, mainly driven by a weakening US dollar”, according to their head of commodities Helen Henton, the paper reports.
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