SF: Gold Futures Rise Most in Two Weeks as Global Equities Slump
Aug. 31 (Bloomberg) -- Gold futures rose the most in two weeks on demand for a haven as equities slumped worldwide.
In August, the MSCI World Index of stocks was down 4.2 percent, heading for the biggest drop since May, on concern that the economic rebound is slowing. Before today, gold gained 13 percent this year, reaching a record $1,266.50 an ounce in June.
"Gold is the primary beneficiary of this general angst over the economy," said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. "The flight-to-safety bid is back on, and Treasury yields are a joke now. That's a good setup for gold to go higher."
Gold futures for December delivery rose $8.80, or 0.7 percent, to $1,248 an ounce at 9:26 a.m. on the Comex in New York. A close at that price would mark the biggest gain for a most-active contract since Aug. 16. This month, the metal has climbed 5.4 percent, the most since April.
