Gold gains slightly as equities fall and investors hedge

The gold price was bolstered by the diversion of funds from the equities market

The gold price was bolstered by the diversion of funds from the equities market

Gold advanced for in Asia as a slump in global equities increased demand for the precious metal as a haven investment. The regional benchmark MSCI Asia Pacific Index dropped for the first time in three days as the prospect of rising bank losses curbed optimism that the global economy is recovering. U.S. stocks tumbled yesterday following six straight weeks of gains as investor concerns grew that credit losses are worsening.

“The gold price was bolstered by the diversion of funds from the equities market, “David Moore”, chief commodity strategist at Commonwealth Bank of Australia, said in an e-mail today. The Gold is trading at $888 as of 9:15am, London time. Gold’s Pool-Position is 52% Long, meaning that just about half of Finotec’s clients are buying the precious metal whilst the other half are selling.