Gold Shines On Safe Haven Demand Amid Global Gloom

Gold prices have climbed to a six-and-a-half month peak, moving closer to the key $US1300 an ounce level, as concerns about economic slowdown gripped global markets and fuelled demand for safe-haven bullion.

Spot gold gained 0.6 per cent overnight to $US1291.76/oz, having earlier touched $US1292.90/oz, its highest since June 15.

US gold futures settled up 0.8 per cent at $US1294.80/oz.

“Gold is overbought on most measures and needs to consolidate but with the speculative long still building, the market will be looking for $US1300 sooner than expected,” Saxo Bank analyst Ole Hansen said.

“If the fourth-quarter theme of lower dollar, stocks and yields carries on, gold is likely to break higher and set its sight on the previous high around $US1380.”