(Reuters) – Gold price reversed early losses and rose to mark a 4-month high as U.S. economic data provoked doubts on the world’s largest economy pace of recovering.
Weaker than expected economic data releases from the U.S. and China through the week spurred worries among investors, thus increasing gold safe-haven demand. U.S. Consumer confidence index came lower than expected, and U.S. housing survey showed a loss in recovering momentum in housing sector.
Gold price was up 0.22% at $1,343.10 per ounce by 7:00 Am GMT, and it touched $1,346.60 level, the highest since the end of October. Comex gold for April delivery rose 0.04% to be traded at $1,343.20 per ounce. SPDR Gold Trust holdings, one of the largest gold exchange-traded funds (ETFs), rose 0.26% to record 803.70 tonnes on Tuesday, from 801.61 tonnes on Monday.
Despite gold price being higher than most moving averages, it’s still well below all-time-high at $1,920 per ounce recorded in 2011. Some analysts believe that the 12-year bull-run ended, correction being made and an uptrend is forming.
Yuichi Ikemizu, branch manager of Standard Bank in Tokyo, says that gold price rose above the 200-day moving average a week ago, which increased investors’ trust in gold performance. Since the start of 2014, gold price is rising and U.S. interest rates going down, he added.