Jan. 28 (Bloomberg) -- Gold futures jumped the most in 12 weeks on demand for a haven amid escalating tensions in Egypt.
Tens of thousands of marchers chanted “liberty” and “change” as rallies began today at points across Cairo in the biggest challenge to Egyptian President Hosni Mubarak’s 30-year rule. Before today, gold dropped 7.1 percent this month. Earlier, the price touched a four-month low.
“The big turnaround in gold has to do with the escalating crisis in Egypt,” said Matthew Zeman, a metal trader at LaSalle Futures Group in Chicago. “People are saying it’s better to be safe than sorry,” and investors also are unwinding bets on a decline, he said.
Gold futures for April delivery rose $22.30, or 1.7 percent, to $1,342.10 an ounce at 12:19 p.m. on the Comex in New York, heading for the biggest gain since Nov. 4. Earlier, the price touched $1,309.10, the lowest since Oct. 1. The metal climbed to a record $1,432.50 on Dec. 7.
