Gold Futures Approach $1,300 to Post Longest Rally in 11 Months
Bloomberg - Jan 20, 2015
Gold futures approached $1,300 an ounce to post the longest rally in 11 months as signs of slowing global economies boosted demand for the metal as a haven.
Assets in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, last week rose 3.3 percent, the most since May 2010. Economists expect European Central Bank President Mario Draghi to make his biggest push yet to steer the euro area away from deflation by announcing quantitative easing on Jan. 22, according to a Bloomberg survey.
After shunning gold for two years, investors are returning to the metal amid concern that U.S. growth won’t be enough to offset weakness in foreign economies. Policy makers in Europe and Asia are being challenged to come up with fresh ways to stimulate expansion amid prolonged below-target inflation. The International Monetary Fund on Monday made the steepest cut to its global-growth outlook in three years.
