Reasons For Gold's Rally: Return Of Safe-Haven Appeal And Seasonality

Gold price rallied +2.3% to 978.5 Wednesday despite weakness in equity and oil prices. Investors' concern over the US banking sector boosted demand for safe haven. As we noted yesterday, gold's firmness despite dollar's strength and stock markets' weakness probably signaled the comeback of the tallow metal's appeal as a safe haven. We have more confidence in this notion as gold soared more than +2% while the dollar index only pulled back -0.5% to 78.37 yesterday. In the FOMC minutes for the