Gold futures headed higher Wednesday, continuing what has amounted to a five-day rally as China's efforts to manage its currency rates have sent equity markets sliding and boosted the appeal of haven assets. Beijing's surprise devaluation of the yuan on Tuesday and its continued actions Wednesday, including intervening to slow the pace of the decline of its currency, have rippled across the globe as concerns about the health of the world's second-largest economy have intensified.. Amid the turmoil, gold has tacked on nearly $30 since Friday, when the precious metal closed at $1,094.10 an ounce. Gold futures for December delivery GCZ5, +1.30% rose $14.40, or 1.3%, to trade at $1,122.10 an ounce. September silver SIZ5, +1.43% gained 24 cents, or 1.5%, at $15.52 an ounce. "Gold has benefited the most from the situation in China because the metal looks set continue building on the strongest rally seen in months," wrote FXTM market analyst Jameel Ahmad in a Wednesday research note. "Everyone will now be awaiting for any clues from the Federal Reserve on how this move might impact their [intentions] to begin raising U.S. interest rates and if it does, there is inspiration for the gold bulls to continue recovering what have been stunning losses over the previous couple of months," Ahmad said. Chintan Karnani, chief market analyst at Insignia Consultants, said Thursday's U.S. retail-sales data for July will determine gold's near-term direction. "In case gold rises after the release of U.S. retail sale numbers, then $1,220 and $1,292 [an ounce] are the targets, he wrote in a Tuesday note. "The upside risk in gold is more evident that the risk of downside collapse," Peter Hug, global trading director at Kitco Metals Inc. told MarketWatch. In other words, Hug would not be betting against a rise in gold "I would not be short this market," he said. In other metals, October platinum PLV5, +0.70% tacked on $9.20, or 0.9%, to break the $1,000 level at $1,002 an ounce, while September palladium PAU5, +3.06% added $18.45 in Wednesday trade, or 3%, at 616.95 an ounce. September high-grade cooper HGU5, +0.90% added 2 cents, or 0.8%, to trade at $2.350 a pound. Source: MarketWatch
