Gold was steady around its three month high as equity markets hit another pocket of turbulence.
The Dow Jones Industrial Average shed over 230 points as oil shares and miners again took a battering, prompting investors to look for relatively safe havens.
An hour into trading, spot gold was a few cents higher at US$1,128 having been over US$1,130 on Monday.
Exchange traded funds (ETFs) have been the recipient of a lot of money coming out of equity markets and were in favour again yesterday.
Some 12.8 tons flowed back into ETFs almost all of which went into the SPDR Gold Trust, the world’s largest gold ETF, said Commerzbank.
It was the largest daily inflow since mid-December and the eleventh day in a row money has flowed in.
Since the beginning of the year, ETF holdings have increased by 67.5 tons, matching the situation in 2105 when inflows totalled 72.5 tons.
David Govett, Head of Precious Metals at Marex Spectron, said the one concern for him was that the recent buying was spec, fund and ETF driven.
“This high price is driven by oil and stocks. If you believe that the oil market will continue to fall and that China will remain in the doldrums, gold should continue to move slowly higher.”
Silver was flat at US$14.34, while platinum shed US$8 to US$860.
Major share moves
Randgold Resources down 15p to 5,030p
Fresnillo down 26p at 713p
Anglo American down 26.9p at 247.2p