According to a front-page report in Taiwan's "Economic Daily News" on February 1st, international spot gold prices rose by 2% in February, with an 8% monthly gain, marking the largest monthly increase in three years. The Taiwan stock market appreciation plan will relax the daily price fluctuation limit from 8% to 10% starting March 3rd, accelerating alignment with international standards.
Latest data shows that U.S. economic growth slowed significantly in the fourth quarter, performing below market expectations, which boosted the safe-haven appeal of gold. Investors bought gold as a hedge, stimulating a strong rise in international gold prices, with the total monthly gain in January expanding to 8%, the largest monthly increase in three years.
In addition, analysts pointed out that a strong rally in oil prices late Friday also drove the upward trend in gold prices, as some investors bought gold due to concerns over inflation.
Traders stated that although the U.S. dollar remains strong, gold prices may remain robust in the short term due to investor concerns regarding stability in Europe.
Spot gold surged 8% this month, the largest gain since January 2012, aided by the Swiss National Bank's decision this month to abandon the cap on the Swiss franc against the euro. The European Central Bank also announced it would inject over one trillion euros into the economy.
On Friday, spot gold rose to a high of $1,283 per ounce, and at 2020 GMT, it was up 2% at $1,281.
2月 U.S. gold futures closed significantly higher by 2% or $23.90, reaching a daily high of $1,278.50 per ounce. After settlement, driven by a sharp rise in oil prices, February futures rose to $1,281, catching up to the highs in the spot market.
The U.S. Department of Commerce announced that the U.S. fourth-quarter Gross Domestic Product (GDP) grew at an annual rate of 2.6%, compared to a 5% growth rate in the third quarter. Weak business investment and a widening trade deficit offset the boost to the economy from consumer spending, which had grown at its fastest pace since 2006.
