Gold hits near 4-month high
London, February 24, 2014
Gold rose to a near four-month high on Monday, adding to last week's gains, as the dollar weakened and investors remained anxious about the pace of the US economic recovery and China's growth.
Weak US manufacturing data on Friday and a slowdown in the rise in home prices in China for the first time in 14 months in January, raised fresh concerns over the health of the world's biggest economies, drawing investors towards gold, often seen as an insurance in times of troubles.
"Fears about economic conditions in China and the US are driving investors back into gold," Quantitative Commodity Research owner Peter Fertig said.
"We would have to wait for data for the month of March to get a clearer picture about the state of the US economy...in the meantime gold should see some consolidation...the next pivot technical resistance stands at (the) Oct. 28 high of $1,361."
Spot gold rose 1.1 percent to $1,334.50 an ounce in earlier trade, its highest since October 31. It was trading at $1,333.70 by 1250 GMT, up 0.8 percent.
The metal has gained more than 9 percent so far this year, following a 28-percent drop in 2013 that put an end to 12 years of gains.
US gold futures for April delivery rose $10.20 an ounce to $1,333.90.
The dollar was unchanged against a basket of main currencies, while European shares were mixed as investors assessed continued signs of a slowdown in China and the US, which could impact the pace of the US Federal Reserve's stimulus withdrawal.
However, minutes released last week from the Fed's most recent meeting suggested the reduction in monetary stimulus will continue for now. - Reuters