Investing.com - Gold futures rallied sharply in North America trade on Wednesday, as retreating oil prices and steep declines in global equity markets underpinned demand for assets perceived as safer.
Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,246.40 a troy ounce, the most since February 12, before trading at $1,245.20 by 13:55GMT, or 8:55AM ET, up $22.60, or 1.83%.
A day earlier, gold prices advanced $12.50, or 1.03%, as investors sought safer assets amid hefty losses in oil prices and global stock markets.
Oil prices extended sharp losses from the prior session on Wednesday, after Saudi Arabia dashed hopes for collective production cuts and following bearish industry data on U.S. stockpiles.
U.S. crude was down $1.17, or 3.67%, at $30.70 a barrel during early morning hours in New York, while Brent fell 82 cents, or 2.46%, to $32.45.
Meanwhile, global stock markets were under heavy selling pressure as prolonged weakness in oil prices and ongoing concerns surrounding global growth prompted investors to shun riskier assets.
Instead, investors favored safer assets such as the Japanese yen as well as German and U.S. government debt.
Gold prices have been well-supported in recent weeks amid growing speculation the Fed could delay the pace of its tightening for the remainder of 2016.
Prices of the yellow metal soared to a one-year high of $1,263.90 on February 11. Gold is up nearly 16% so far this year amid indications global economic and financial headwinds could make it tough for the Fed to raise interest rates as much as it would like this year.