LONDON: Gold hit a six-week high on Tuesday on concerns over a global economic slowdown after China’s growth eased in the third quarter and as European Central Bank (ECB) insiders flagged new measures to support growth.

Spot gold hit its highest since Sept. 10 at $1,255.20 an ounce in earlier trade, also helped by a softer dollar. It was up 0.5 per cent at $1,252.70 by 1342 GMT, while US gold futures were up $8.50 an ounce at $1,253.20.

Gold was also bolstered by buying interest in the physical markets from Asia - the top-consuming region.

India, the second-biggest gold buyer, celebrates the festivals of Dhanteras on Tuesday and Diwali later in the week. Both are considered auspicious for buying gold, which could provide a boost to retail sales and imports.

Published in Dawn, October 22nd, 2014