Gold’s explosive start to 2016 has lifted prices to the highest level in a year as investors flee a bear market in global stocks, a weakening dollar and the fallout from the spread of negative interest rates. Futures in the metal posted the biggest weekly jump in seven years even as prices fell on Friday, while a measure of gold mining shares was poised for the highest close since July. Producer Barrick Gold Corp. has surged 65 percent this year, after five straight annual losses, while Newmont Mining Corp. is up 44 percent and is the top performer on the Standard & Poor’s 500 Index of equities.
“Gold’s been like a hurricane drawing strength from different sources as it swept higher,” Andy Pfaff, chief investment officer for commodities at MitonOptimal Group, said by phone from Cape Town, after closing a long position in gold following its peak late on Thursday. “It’s all been very favourable for gold.”
[Source: Bloomberg Business – Eddie Van Der Walt & Ranjeetha Pakiam – February 12, 2016]