Gold prices experienced a significant increase as investors responded to weaker-than-expected US economic data following the government shutdown, according to ANZ analysts. The spot price of gold was last up 2.1 per cent to $US4196.90 an ounce, marking a nearly 60 per cent gain since the beginning of January. This surge reflects growing investor appetite for safe-haven assets amidst economic uncertainty.
Ongoing central bank buying, particularly from China, is also playing a crucial role in supporting gold prices. China’s increased reserves and trading activity have contributed to the metal’s upward momentum. Favourable policy settings, coupled with limited investment alternatives, further bolster both retail and institutional demand for gold.
Newmont, a dual-listed gold miner, saw its shares rally in response to the rising gold prices. Newmont Corporation engages in the production of and exploration for gold. The company also explores for silver, copper, lead, and zinc. The company’s shares increased by 3.6 per cent to $US93.13 just before the close of trading in New York.
