Gold had its best year since 2010
Bloomberg|
Jan 01, 2018, 11.40 AM IST
Gold bulls weathered rising US interest rates, record-high equity markets and an improving global economy to push the metal to its best year since 2010.
Bullion futures on the Comex in New York jumped 13 per cent in 2017 for a second straight annual gain. Other measures of the metal also defied the interest-rate odds: Holdings in exchange-traded funds backed by bullion advanced for a second year, as did the net-long position in the metal held by hedge funds and other large speculators.
Gold benefited as declines in the dollar fueled demand for alternative assets, while geopolitical tensions and uncertainty over the impact of a new US tax plan boosted the appeal of havens.
That helped cushion the blow from a surge in equities and the Fed's campaign to tighten monetary policy, which can make non-interest-bearing assets such as gold less competitive.
The longest run of gains in 18 months sent gold past the 100-day moving average this week, which for some chart watchers positions it for further gains heading into 2018.
Gold rose 0.9 per cent to $1,309.30 an ounce on Friday, closing out the year with a seventh straight daily gain that was the longest rally since June 2016.
Bullion futures on the Comex in New York jumped 13 per cent in 2017 for a second straight annual gain. Other measures of the metal also defied the interest-rate odds: Holdings in exchange-traded funds backed by bullion advanced for a second year, as did the net-long position in the metal held by hedge funds and other large speculators.
Gold benefited as declines in the dollar fueled demand for alternative assets, while geopolitical tensions and uncertainty over the impact of a new US tax plan boosted the appeal of havens.
That helped cushion the blow from a surge in equities and the Fed's campaign to tighten monetary policy, which can make non-interest-bearing assets such as gold less competitive.
The longest run of gains in 18 months sent gold past the 100-day moving average this week, which for some chart watchers positions it for further gains heading into 2018.
Gold rose 0.9 per cent to $1,309.30 an ounce on Friday, closing out the year with a seventh straight daily gain that was the longest rally since June 2016.
