Gold trades at eight months high on disappointing U.S. economic results. The metal gained by 0.58% to $1326.1 today at Asian market.
Gold rally started with the beginning of New Year. On 31st Dec, 13 Gold made the low at $1182.57 by falling near to 28% in a year, highest since 1981. Demand for precious metals got stronger as U.S. economy continuously performed below economists expectation. In February there were no impressive results following weak data of last month.
In last week except Consumer Confidence all results were below previous release. It promoted bearish sentiment for dollar and bolstered investment in precious metals. In this year Gold gained by 5.97% and Silver gained by 7.49%.
Shares of SPDR Gold Trust, world largest gold backed exchange traded product, rose by 7.81% to 127.15 in this year. Dollar index, gauge of U.S. dollar compare to the basket of six major currencies, fell to 79.95 lowest since 30th Dec as industrial production fell to -0.3%, lowest in last eight months, and consumer confidence remained unchanged at 81.2.
At present level there are less chances of fall in Gold prices. Moderate growth at emerging markets and slowing pace of developed economies may keep haven assets in demand.