Central banks facing 'loss of faith' as gold rallies

Melbourne

GOLD'S rally is being driven as investors start to lose faith in central bankers' ability to deal with economic challenges, according to Evolution Mining Ltd's Jake Klein, who said that the metal's advance has been strong enough to draw attention from long-time bears.

"The safe-haven demand appears to be where people are focused on, and that is on a loss of faith in central banks being able to manage through this period," said Mr Klein, executive chairman of Australia's second-biggest producer. Bullion is "certainly getting more attention from people who have generally been bears over the past few years," Mr Klein said.