Gold gains in London
LONDON, Jan 20: Gold hit a more than one-week high on Monday as buyers hedged against persistent tensions in the Middle East and impeachment proceedings against US President Donald Trump, while deficit-hit palladium's record run showed no signs of abating.
Spot gold was up 0.2 per cent to $1,559.99 per ounce by 1514 GMT, having earlier touched its highest since Jan 10 at $1,562.51. US gold futures were little changed at $1,560.20.
"Investors are flocking towards gold in spite of a spike in equity markets, mostly because of long-term uncertainties like political insecurity, probable equity market volatility..., weak earnings expectations and ultra-low interest rates," Commerzbank analyst Eugen Weinberg said.
Investors are pouring money into gold-backed exchange-traded funds (ETF) and central banks are buying the metal at record rates, Weinberg added.
Holdings of the world's largest gold-backed ETF, SPDR Gold Trust, rose to 898.82 tonnes on Friday, the highest since Nov 11. -Reuters