Gold showed further strength overnight and this morning, advancing to US$1,168/oz in the spot market before settling back to fix in London at US$1,149/oz, the highest price in over a month. The price has risen over 6% since it fixed at US$1,080/oz on 31 July, the lowest level for five years.
According to Bloomberg, the strength comes on signs the Federal Reserve may delay an interest rate increase as inflation remains low and the selloff in emerging markets spreads.
China’s decision to devalue amid slower growth (a gauge of Chinese manufacturing plunged to a six-year low on Friday) and prospects for higher U.S. interest rates have spurred selling across emerging markets and commodities, but the uncertainty has attracted buyers seeking safe haven investments into gold .