Will increased demand for gold as a safe haven prove to drive up prices?
"Earlier, gold soared to an intraday high of $882 an ounce, its highest level since Jan. 1. Gold gained 'on heavy safe-haven demand as sentiment deteriorated across global equity markets,' said analysts at Action Economics."
"'The true secular measure of currencies is gauged against gold,' as the metal extends to fresh record highs against the British pound, three-month highs against the euro, three-week highs against the U.S. dollar and only three-day highs against the rallying yen, said Ashraf Laidi, chief market strategist at CMC Markets.
Gold has breached well above its 200-day moving average against both the euro and the dollar, but the metal remains 11% lower than its 200-day moving average in yen terms, Laidi said in a research note.
'Since there remains ample upside in yen terms, Japanese investors may deem this as an opportunity to drive up the metal to next key targets, thus prompting global investor demand further higher,' Laidi said."