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Gold resilient as this year's best commodity as stocks, oil wilt
[SINGAPORE] Gold held its ground near a three-month high as losses in global equities and oil fanned haven demand, bolstering its position as this year's best performing commodity as investors reduced expectations of further US rates rises.
Bullion for immediate delivery traded at US$1,127.66 an ounce at 9:38 am Singapore from US$1,129.01 on Tuesday, when it rose to US$1,131.08, the highest level since Nov 3, according to Bloomberg generic pricing.
The metal has outperformed all other members of the Bloomberg Commodity Index this year, surging 6.3 per cent, as global stocks sank 7.9 per cent.
The "market situation suggests that gold is one of the beneficiaries of the market gyrations," Bob Takai, chief executive officer and president of Sumitomo Corporation Global Research Co, said by phone.
"I'm not sure if the Fed will really continue to raise interest rates for the rest of the year," he said, citing recent US growth data.