Gold touches twelve-month peak amid global financial turmoil

The gold price climbed higher by 5.5% to a twelve-month peak of $1,263 per troy ounce. However, it was unable to hold its ground as it declined $20 lower in the early morning session. Gold in euro terms advanced by 4.6% to reach €1,109 per troy ounce and was priced around the €1,100 mark this morning. The gold price is seen taking advantage of the financial global turmoil as stock markets are seen struggling sending investors stampeding towards safe- haven assets.  
Yesterday, the US dollar continued to depreciate, while yields on 10-year U.S. Treasuries declined to a 3½-year low of under 1.6%. Riksbank's move to lower its interest rates further into negative is likely to put pressure on the ECB to take action in March. Declining oil prices and rising euro are likely to weigh on the ECB's decision. In the current market scenario, gold ETF are seen attracting high demand as it recorded its highest daily inflow at 16 tons since mid-December yesterday.