Gold prices climbed to a 6-1/2 month peak, moving closer to the key $1,300 an ounce level on Thursday, as concerns about economic slowdown gripped global markets and fuelled demand for safe-haven bullion.
Spot gold gained 0.5 percent to $1,290.60 per ounce at 11:28 a.m. ET (1628 GMT), having earlier touched $1,292.32, its highest since June 15.
“Gold is overbought on most measures and needs to consolidate but with the speculative long still building, the market will be looking for $1,300 sooner than expected,” Saxo Bank analyst Ole Hansen said.
“If the fourth quarter theme of lower dollar, stocks and yields carries on, gold is likely to break higher and set its sight on the previous high around $1,380.”
A warning by Apple Inc on revenue rocked financial markets on Thursday amid the backdrop of worries over slowing global economic and corporate growth.
Gold is traditionally considered a safe investment during times of uncertainty, and weakness in the U.S. dollar has added to demand for the precious metal by making it cheaper for holders of other currencies.
Gold denominated in sterling peaked at 1,031.89 pounds an ounce during the day, its highest since Sept. 8, 2017, while in euro terms it rose to 1,137.47 euros, the highest since June 9, 2017.
“The performance of gold in other currencies than the U.S. dollar is driven by the performance of these currencies versus the dollar,” said Julius Baer analyst Carsten Menke.