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Gold extends advance as China growth concern fuels haven demand
[SINGAPORE] Gold climbed for a second day after posting the biggest monthly gain in four years as data showed Chinese manufacturing contracted for a record seventh month, boosting demand for a store of value. Assets in exchange-traded products jumped in February by the most in seven years.
Bullion for immediate delivery rose 0.7 per cent to US$1,247.78 an ounce by 10 am in Singapore, according to Bloomberg generic pricing. The metal climbed 11 per cent in February, the biggest monthly increase since Jan 2012.
Gold surged 18 per cent this year as demand for haven assets expanded amid turmoil in equities and economic growth concerns in China, which reported Tuesday that its official factory gauge continued to deteriorate in February.
ETP holdings rose 12 per cent last month, the most since Feb 2009.
Bullion may prove to be this year's best performing asset as central banks exhaust their firepower, according to Taurus Wealth Advisors Pte. Gold has risen on speculation the Federal Reserve will not raise borrowing costs as quickly as planned, boosting the appeal of bullion which doesn't pay interest.