Gold prices have hit a fresh four-week high, as investors rush into the metal amid gloomy economic data and turbulent stock markets in Europe and Asia.
Gold prices have hit a fresh four-week high, as investors rush into the metal amid gloomy economic data and turbulent stock markets in Europe and Asia.
Gold for December delivery, the most actively traded contract, on Tuesday closed up $US4.30, or 0.3 per cent, at $US1234.30 a troy ounce in the Comex division of the New York Mercantile Exchange. Earlier in the session, prices hit $US1238.60, their highest level since September 17.
Factory output in the eurozone slumped in August, data showed on Tuesday, offering more proof that the region's economy is stagnating.
Meanwhile, Germany's ZEW Institute said it didn't rule out a recession in the region's largest economy, after gross domestic product shrank 0.6 per cent in the second quarter.
While US stocks rose after three days of deep declines, Europe's Stoxx 600 index was down 0.3 per cent to 320.59, and Japan's Nikkei index lost 2.38 per cent to 14,936.51.
The economic worries buoyed gold, which some investors purchase during times of economic and political uncertainty, believing it will hold its value better than other assets.
Fading confidence in the global economy re-animated trader speculation that the Federal Reserve would delay raising interest rates until well into 2015. Minutes from the Fed's September policy meeting, released on Wednesday, revealed that officials had grown increasingly concerned by slowing growth in Europe and Asia and the threat that posed to the US recovery. Gold prices are up four per cent off their recent lows.
"Clearly, the low prices are being viewed as an attractive opportunity to buy," analysts from Commerzbank said in a note to clients.
Other precious metals followed gold higher, with silver gaining 0.3 per cent to $US17.403 a troy ounce, platinum up 0.9 per cent to $US1272.30 a troy ounce, and palladium 1.2 per cent higher at $US795.10 a troy ounce.
