Gold could hit levels last seen in 2013 if the dollar extends its slide and equity markets reverse.
Bullion at $1,400 an ounce is “achievable” in the next two months, Stephen Innes, head of trading for Asia Pacific at brokerage Oanda Corp., said in an interview Thursday. The Bloomberg Dollar Spot Index plunged to the lowest since 2014 after Treasury Secretary Steven Mnuchin endorsed the currency’s drop at the World Economic Forum in Davos.
And while global equity markets have repeatedly hit all-time highs in recent months, gold is also on the march, rising to as much as $1,366.15 an ounce on Thursday, its best mark since August 2016. The metal for immediate delivery climbed 0.2 percent to $1,361.12 an ounce at 11:58 a.m. in New York, while an index of the dollar dropped by 0.5 percent.
Gold has climbed more than 8 percent since the middle of December as the dollar slumped and investors sought protection from a potential tumble in share markets and a resurgence of inflation. Holdings of bullion in exchange-traded funds have grown to the largest since 2013, while money managers have more than doubled their net bullish bets on Comex since the middle of last month.