Gold Futures Mounts 4-Months High on Spotty Economic Data

Eye on Equities  |  2014-02-25 02:47:11   |   By

Gold on Monday was found to mount high, closing highest in four months.

SAN FRANCISCO (Scrap Monster) : Gold on Monday was found to mount high, closing highest in four months. The recent expectations on spotty economic data are believed to trigger the interest of investors on gold on the day. April delivery gold was witnessed to climb high on the Comex division of the New York Mercantile Exchange at $ 14.40 or 1.1 % to reach at $ 1,338 an ounce on Monday. According to the data of FactSet, the rise was reported as the highest after the active rise since October 30. Silver on March delivery also showed the highest since October last year which climbed to 27 cents or 1.2 % to reach $ 22.05 an ounce.

The impressive increase of gold price was mainly due to the positive speculations over the weak economic data for the investors that gave safe-haven appeal to Gold. The increase of gold demand according to Mr. Richard Gotterer, the MD and senior financial advisor at Wescott financial advisory group, is also impacted due to the geopolitical issues related to Ukrain, Venezuela and Egypt.

According to the data released on Monday, the gauge of US service sector was found to plunge to the lowest level in four months in February. Gotterer adds that the rise of gold in the wake of a stronger equity market is not at all surprising. It is also found to have decoupled in the shortest term and the rally of gold is rooted on various other factors such as the oversold increase. The rise of gold also favored from the fueling of geopolitical fears and currency worries. The renewed interest of China and India for physical gold and silver has also accelerated the rise.