Gold Futures Tops $1,300 in Longest Rally Since 2011
Gold posted the longest rally since July 2011, topping $1,300 an ounce for the first time since November, after signs of faltering U.S. economic growth added to the increasing investor appetite for haven assets.
U.S. retail sales fell in January by the most since June 2012, and jobless claims unexpectedly rose last week, government data showed today. Federal Reserve Chairman Janet Yellen said Feb. 11 that the recovery in the U.S. labor market is “far from complete.” Gold jumped 70 percent from December 2008 to June 2011 as the central bank pumped more than $2 trillion into the financial system.
Gold last year tumbled the most since 1981 after some investors lost faith in the metal as a store of value. In 2014, the price has climbed 8.1 percent amid a drop in emerging-market currencies and rising demand for coins and bars. The rally hasn’t swayed Goldman Sachs Group Inc. analysts who yesterday reiterated that prices will “grind lower.” The 2013 slump forced writedowns for Barrick Gold Corp. and Goldcorp Inc.
“The deterioration in the job market is becoming increasingly evident,” said Jeff Sica, who helps oversee more than $1 billion of assets as president of Sica Wealth Management in Morristown, New Jersey. “People are realizing that the economy still needs stimulus to grow, and that is keeping gold supported. Yellen sounded dovish. Today’s key economic numbers makes it clear that all is not well.”
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http://www.bloomberg.com/news/2014-02-13/gold-falls-in-london-after-gains-seen-encouraging-metal-sales.html
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