February 17, spot gold surged to $1,329.55 per ounce making a new record high since November 2013, Reuters reported. Growth of precious metal prices is linked to investors’ disappointment with the U.S. microeconomic prints released on February 14.
The microeconomic survey revealed that the U.S. manufacturing output curtailed by 0.3% in January frustrating analysts’ expectations. Thus, investors preferred investing in more secure assets, in particular precious metals. As of 7:20 GMT, gold ounce was trading at $1,326.6. In the period February 10-16, spot gold jumped 4%. It has advanced 10% since early 2014. By contrast, spot gold depreciated 28% as of the end 2013. When trading in the U.S., gold tender prices climbed every ninth session in a row that had not been recorded since July 2011. Meanwhile, silver has spiked 12% starting this year.
In late January, mass media reported on the abruptly rising demand for gold coins. It stems from a slump in prices of precious metals in 2013 which contributed to its popularity among buyers. In 2013, China was acknowledged to be the largest gold consumer in the world.
