Gold glitters in flight to safety but rally not expected to last

Singapore

INVESTORS are buying more gold as its status as a safe haven gains traction again, though analysts believe that the yellow metal's glowing start to the year is not expected to last.

Once the shock of market volatility of the past few weeks wears off, investors' focus will probably return to a further rise in US interest rates, which would prove negative for gold prices, they say.

UBS commodities analyst Wayne Gordon said: "The path of resistance is down for gold in the short term."

With investors seeking safety in gold amid the floundering of the global…