Azerbaijan, Baku, March. 15 / Trend A.Badalova /
Gold advanced, recovering from the lowest level in a month, as Asian equities and oil rebounded after the twin risks of geopolitical tensions in the Middle East and Japan's strongest earthquake shook investor confidence, Bloomberg reported.
Immediate-delivery bullion rose 0.4 percent to $1,401.63 an ounce at 3:13 p.m. in Singapore, after slumping as much as 3.2 percent to $1,381.22 yesterday, the lowest level since Feb. 17. The April-delivery contract in New York added 0.6 percent.
"There's some bargain-hunting after not only gold but commodities saw a sharp sell-off across the board as investors sought the safety of cash," said Park Jong Beom, senior trader with Tongyang Futures Co. in Seoul. "A rebound in stocks also brought some relief to investors."
The Standard & Poor's GSCI Index of 24 commodity futures tumbled 3.8 percent yesterday, the biggest drop since July 29, 2009, on concern that a nuclear accident outside Tokyo may threaten the global economy. Asian stocks jumped 3 percent after a 5 percent decline yesterday, the most since November 2008, while oil in New York rebounded from a two-week high.
"Financial markets stay focused on Japan's nuclear power crisis and the impact it could have on the global economy," said Ong Yi Ling, Singapore-based analyst with Phillip Futures Pte. "While gold could be caught in a widespread sell-off of risk assets as investors convert holdings to cash, the safe- haven properties of gold could help support prices."