Nicholas Larkin and Phoebe Sedgman
February 17, 2014
Gold advanced to the highest level in more than three months as speculation the U.S. economic recovery will slow spurred demand for a haven. Silver headed for the longest run of gains since at least 1968.
Bullion climbed 4.1 percent last week, the most since the period ended Aug. 16. U.S. factory production unexpectedly declined in January by the most since May 2009, according to a report released on Feb. 14. Gold will establish a new range above $1,300 an ounce and U.S. investors are becoming friendlier to the metal, UBS AG said in a report today.
Gold tumbled the most since 1981 last year after some investors lost faith in the metal as a store of value and as U.S. policy makers signaled they will slow stimulus. Bullion rebounded 10 percent this year.