Gold hits two-year high as investors seek safe havens

UNITED STATES July 06 2016 9:45 PM

NEW YORK (Scrap Register): Gold has hit its highest price in two years as expectations for monetary easing drive global market-set interest rates lower and investors continue to pile into gold exchange-traded funds, said broker SP Angel. 

The metal rose with other safe-haven assets, including sovereign bonds, the firm continues. The Federal Reserve is "highly unlikely" to raise interest rates at a meeting this month, and markets are now factoring in only a 10% chance of a rate hike before the end of December, SP Angel added. 

Globally, the potential for further negative yields is pushing money into gold. Overnight news reports say Japanese 20-year government bond yields turned negative for the first time ever. Gold prices were already rising on the back of steady demand from India and China," SP Angel added. 

As of 9:17 a.m. EDT, Comex August gold was $13.90 higher at $1,372.60 an ounce, peaking at $1,377.50.