SINGAPORE (Dec 31): Gold is rallying into the end of 2018 as turmoil in global equities, the partial US government shutdown and concerns about the outlook for next year stoke demand, lifting prices to the highest in six months.
Bullion climbed as much as 0.4% on Wednesday, extending last week’s gain and on course for the biggest monthly advance since January 2017. Money managers are the most bullish on prices they’ve been in half a year.
The metal is proving to be a beneficiary of the sell-off that’s engulfed global equities after US shares tanked on Monday followed by losses in Asia on Christmas Day. Investors are turning away from risk amid further signs of dysfunction in Washington, with multiple sources of concern including President Donald Trump’s showdown with the Federal Reserve, the impasse over the budget, and fall-out from the resignation of Defense Secretary James Mattis.