Gold regains haven allure in equity rout

21-Aug (FT) — Gold is regaining its role as a haven investment amid a global equities rout, with the precious metal set for its biggest weekly gain since January.

Gold hit $1,168.4 on Friday, the highest level since July 7, as world stock markets headed for their worst week of the year and investors headed for safety, sending US bond yields lower.

The metal is diverging from other commodities to benefit from risk aversion in markets amid weak oil prices and a rout in emerging market currencies. It has risen 8.5 per cent from its intraday low for the year reached on July 24.

“It would appear that the yellow precious metal is not quite so useless after all when things get turbulent on the markets,” analysts at Commerzbank said.

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