GOLD rallied to a three-week high above $900/oz yesterday as Wall Street equities extended losses after data showed US existing home sales fell to a much lower than expected annual rate last month.
Falling stocks and continuing jitters over the health of the US economy are enhancing the precious metal’s appeal as a haven from risk, while physical demand is picking up in major consumer India ahead of a key festival, analysts said. Gold hit a high of $907,10/oz, its firmest since April 3, and was bid at $904,50/oz by late afternoon from $889,15.
US gold futures for June delivery on the Comex division of the New York mercantile exchange rose $14,70 to $906,50/oz.
“The data is a bit disappointing for the market,” Michael Widmer of BNP Paribas said. “There is still uncertainty,” he said. Reuters
