Gold hits 5-week high

Gold climbed to a five-week high on Wednesday night on concerns over the health of the US economy.

Dismal US retail sales data triggered speculation that the US Federal Reserve will delay raising interest rates. Meanwhile, the ongoing Greek debt crisis continues to boost demand for the yellow metal.

Spot gold prices surged to just below $1,219 on Wednesday night and continue to trade just below today. Silver also came into demand, sending prices to a five-week high.

Elsewhere, a report noted that global demand for gold declined by one per cent in the first quarter of 2015.

The World Gold Council’s research showed the key driver was a decline in Chinese jewellery buying. However, it only narrowly outweighed increased demand from India and the West.

German buying was noted to increase by 20 per cent as a hedge against the threat of Greek default.

Gold prices could be further boosted by disruptions to supply in South Africa. Workers are calling for wages to be doubled, which is currently being discussed, but a similar situation in the platinum sector led to a five-month strike.