A Revival of Safe-Haven Demand Is Lifting Gold Prices – Capital Economics

Kitco News --While the turmoil in global equity markets is weighing on the industrial metals this month, gold is benefiting from a revival of safe- haven demand, said research firm, Capital Economics on Thursday. Over the past month, precious metals’ performance diverged sharply, with gold the only metal ending the month higher despite the U.S. Federal Reserve hiking interest rates in December. Gold and silver are benefiting from safe- haven demand on the back of the fall in global equity markets, exacerbated by the recent oil price declines and escalating tensions in the Middle East said Julian Jessop, commodity economist for the U.K-based firm. Despite his renewed hope for gold, Jessop recently lowered the yellow metal’s forecast for 2016 to $1,250 an ounce, down from his original call of $1,400 by year’s end. February Comex gold was last down $7.80 at $1,098.00 an ounce. March Comex silver was last down $0.07 at $14.09 an ounce.