Gold traders are setting their sights on $1,400 an ounce, a price not reached since September, as the worst standoff between the West and Russia since the end of the Cold War increases demand for the metal as a haven.
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.
Gold extended its 2014 rally, climbing to a three-month high as speculation that U.S. stimulus will continue boosted the appeal of alternative assets. Silver rose in the longest run of gains since 2011.
Emerging-market economies face inflation risk as policymakers around the globe cut interest rates to stimulate growth, said Quincy Krosby, chief market strategist at Prudential Financial Inc.’s annuities business.
Treasuries rallied with gold and the dollar retreated after slower growth in U.S. payrolls last month eased concern stimulus cuts would accelerate. The Standard & Poor’s 500 Index rose to cap a weekly gain.
Most emerging-market stocks advanced after China’s central bank eased a cash shortage in the financial system and the International Monetary Fund raised its forecast for global economic growth this year.
Emerging-market stocks slumped to a four-month low as concern China’s economic growth will falter sank commodity producers from Vale SA to Minmetals Development Co. Brazil’s Ibovespa led losses among global equity indexes.