Gold capped the longest rally since August 2012 as Federal Reserve Chairman Janet Yellen said more work is needed to restore the labor market, signaling monetary policy will boost demand for alternative assets.
Banks led by Goldman Sachs Group Inc. and Citigroup Inc. say commodities are heading for losses in 2014 as rising supplies and slowing demand compound slumps that led to bear markets last year in gold, copper and corn.
Gold will extend declines this year as gains in equity markets reduce the need for haven assets and increased regulation hurts risk appetite, according to Morgan Stanley, which lowered its bullion forecasts.
Austria’s mint is running 24 hours a day to meet orders for gold coins, joining counterparts from the U.S. to the U.K. to Australia in reporting accelerating demand boosted by the bear market in bullion.
Hedge funds raised bullish gold wagers to the highest in eight weeks as signs of stronger Chinese demand drove prices to the longest rally since August. Goldman Sachs Group Inc. says the gains will be short-lived.
The nickel market remains oversupplied and prices will hover near current levels, according to a report by Morgan Stanley today that contrasts with forecasts from Citigroup Inc. and Goldman Sachs Group Inc. for a rally.