Gold holds weekly gain as emerging markets spur demand

LONDON: Gold today held the biggest weekly gain in three months as concern about slowing growth in emerging markets spurred demand for the safe-haven.

Gold increased to $1,116.39 an ounce. It rebounded 3.6 per cent since reaching a five-year low on July 24. Silver was little changed at $15.27 an ounce.

The MSCI Emerging Markets Currency Index retreated to near a five-year low on Monday while a gauge of developing market stocks fell to the lowest since 2011.

Meanwhile, gold climbed 1.9 per cent last week after China weakened the yuan in a move that supports exports, triggering fears of competitive currency devaluations.

The metal is still heading for a third straight annual loss. While billionaire Stan Druckenmiller bought gold through the largest bullion-backed fund in the second quarter, hedge-fund manager John Paulson cut his holdings for the first time in two years.