Gold up 5 percent this week

Gold is up just over 5 per cent so far this week, trading around $, 1,239 an ounce this morning in Asia. On Thursday, gold jumped 4.1 per cent, its biggest one-day gain since January 2009. Last week, gold gained 4.98 per cent for its best weekly performance since the week ended October 28, 2011, when it rose 6.17 per cent.

The rush to safe havens helped support gold, which is sensitive to moves in rate expectations and the US dollar.

Uncertainty about the global growth outlook and the state of the banking sector have led investors to flee to safe have assets. Investors grew more worried about banks’ profitability in a low-growth and low-interest rate environment. U.S. Treasury yields tumbled in another safe-haven play that also bolstered demand for gold.

The rally extended after U.S. Federal Reserve Chair Janet Yellen, during her biannual testimony to the U.S. Senate Banking Committee, said she will not take the consideration of negative rates off the table.

Spot gold has risen nearly 18 percent in 2016 so far, following three years of losses.

The post Gold up 5 percent this week appeared first on FXTM Blog.

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