Gold prices across the world have hit a four-week high with news that the US Federal Reserve will not be drastically reducing the pace of stimulus.
The economic giant made this decision based on analysis of data that revealed new job creation was far lower than previously estimated.
Only 74,000 positions were added in December 2013, the lowest it has been since as far back as January 2011.
In light of this news, spot gold rose for the third consecutive week. After hitting $1,254.05 earlier in the day, it was up by 0.4 per cent at $1,251.60 an ounce by the end of play.
"Prices may continue to rise till $1,267," commented Joyce Liu, an investment analyst at Phillip Futures. "As its earnings season for US equities, large disappointments in company earnings may also direct some funds back to gold."
In spite of this, gold's status as an investment safe haven is not as resolute as it once previously was, and last year saw its price fall by almost a third.
Find out about commodities trading and learn CFD strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.