Gold Climbs to Three-Month High as U.S. Concerns Spur Demand

Gold advanced to the highest level in more than three months as speculation that a U.S. economic recovery will stall boosted demand for haven assets. Silver headed for a 12th day of gains.

Bullion for immediate delivery rose as much as 0.9 percent to $1,330.03 an ounce, the highest since Oct. 31, and was at $1,326.78 by 9:41 a.m. in Singapore. Prices climbed 4.1 percent last week, the biggest gain since the period ended Aug. 16.

U.S. factory production unexpectedly declined in January by the most since May 2009, figures from the Federal Reserve showed on Feb. 14. Gold tumbled the most since 1981 last year after some investors lost faith in the metal as a store of value. Bullion has rebounded 10 percent in 2014 amid rising demand for coins and bars and as signs of faltering U.S. economic growth added to the increasing investor appetite for a haven.

Billionaire hedge fund manager John Paulson, who backed away from his bullish bet on gold last year, kept his holdings of the metal unchanged in the fourth quarter, a government filing showed Feb. 14. Assets in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, increased for a third week in the period ended Feb. 14, the longest such rally since August, according to data compiled by Bloomberg.

Gold for April delivery rose as much as 0.9 percent to $1,329.90 an ounce on the Comex, the highest for a most-active contract since Oct. 31, and traded at $1,326.50. Futures jumped 4.4 percent last week, the most since the period ended Aug. 16.

(Source: Bloomberg)