Gold Snaps Back to Bull Market as Prices Surge on Haven Demand

Gold cruised to a bull market, heedless of rebounding stock markets, as traders expect central banks to curb yields on other investments in an effort to spur economic growth. 

The metal has climbed more than 20 percent from a December low, the common definition of a bull market. Gold futures advanced 1 percent to settle at $1,270.70 an ounce at 1:43 p.m. on Comex in New York. Prices rose after a U.S. report Friday showed average hourly earnings posted the first monthly drop in more than a year, even as employers added more workers in February than projected. 

“Although gold is very much driven by Fed policy, the impact of ECB policy decisions may become increasingly relevant for gold price action, as concerns about negative interest rates gain traction,” Joni Teves, a strategist at UBS Group AG, said in a note on Friday. “We think negative interest rates should be positive for gold.”

 

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