- Gold reversed early losses on Thursday as volatility in stock markets stoked safe haven demand, with bullion funds seeing fresh buying from investors.
- Asian shares got off to a shaky start as investors remained cautious in the face of a fragile recovery in crude oil. Safe-haven assets, including the Japanese yen, gained across the board.
- Gold’s 16-percent rally this year has been fuelled by safe-haven bids as global equities tumbled on lower oil prices and fears of an economic slowdown. The metal hit a oneyear top of $1,260.60 two weeks ago.
- An increase in assets of bullion-backed exchange traded funds (ETF) has also supported the rally. Inflows into SPDR Gold Trust, the top gold ETF, since the beginning of the year have already surpassed outflows for the whole of 2015. The increase in assets so far is also the highest since 2010. On Wednesday, holdings of the fund rose further to 760.32 tonnes, the highest since March 2015.