CM: Gold soars to 2-week highs as risk aversion spreads
FXstreet.com (Córdoba) - The yellow metal has accelerated gains on Wednesday, as investors turned to safe-haven assets seeking for refuge amid concerns over a global slowdown after China raised interest rates today and Moody's downgraded Portugal's credit rating on Tuesday.
Gold moved somewhat lower tracking other commodities after China's announcement, but its safe-haven role offset its commodity status and quickly reversed losses, climbing to a fresh 2-week high ahead of the Wall Street opening.
Gold has risen over $15 in recent trade and hit its highest since June 23 at $1527.80. Currently the precious metal is at $1526 an ounce, 0.73% above its opening price. Gold price is rising for third straight day after bottoming out near $1478 last Friday.
Investors will likely remain cautious ahead of key economic announcements in the coming days.
