Gold eyes best week in 4 years as stock market turmoil lifts haven appeal...

Reuters
February 12, 2016

Gold took a breather on Friday after soaring 4 percent the previous day but was still set for its best week in four years after stock market turmoil sent investors into safe haven assets.

Gold has benefited along with bonds and the Japanese yen from a rush to safety as investors worry about the health of some banks and the risk of a possible global recession.

They have been unnerved since the Bank of Japan, followed by Sweden this week, introduced negative interest rates to try and stimulate growth and now worry that if economic conditions deteriorate sharply the U.S. Federal Reserve might have to cut rates rather than raise them.

Bullion surged to a one-year high on Thursday, its biggest single-day percentage rally since 2013, and analysts and traders see more gains ahead if the weakness in equities persists. European shares picked up on Friday, gaining 2 percent, but analysts said the turmoil was not over.

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