Gold has failed as a safe-haven commodity despite a plethora of global economic woes, Barclays says, as the precious metal slides towards a six-year low.
Bullion spiked to $US1301 an ounce in January but at Thursday’s level of $US1146.81($1558.76), was trading just a few dollars above the six-year low of $US1132.36 it plumbed in November.
In contrast, in the bull-market days of 2011, gold reached all-time highs of $US1900 an ounce. Unfortunately for bullion fans, things aren’t likely to improve any time soon, Barclays says.
Gold, traditionally a commodity that investors flock to in troubled times, has “failed to garner safe-haven interest” despite the recent unrest in Greece and China, Barclays said in a research note.
“Although gold’s losses have been modest in comparison to commodities, other safe havens have outperformed gold in its role as a currency.
“Gold has also had to perform its duty as a liquid asset to meet margin calls elsewhere.
“Further, the market is focused on the timing and likelihood of a US rate hike.”
Barclays said the 2015 third quarter was “likely to be the weakest quarter for gold” with a price target of $US1150.
For the rest of this article, click here: http://www.smh.com.au/business/markets/gold-loses-safehaven-allure-as-price-nears-2009-level-20150716-gidikc