Gold hits four-month high on economic concerns

Gold prices rose above $1,340 on Wednesday, holding onto four-month highs on uncertainty over China's economic policy moves and with weaker data raising questions about the strength of the US recovery.

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Investors have poured back into the metal, which has risen 11%  since the beginning of the year, on worries about economic conditions in the United States and in China, which is now dealing with unprecedented growth in corporate debt.
Spot gold touched its highest since October 30 at $1,345.35 an ounce and was down 0.1%  at $1,339.23 by 1146 GMT.

US gold futures for April delivery fell 0.2%  to $1,339.40 an ounce, having earlier hit a four-month high of $1,345.60.
"At the moment the market is reacting to weaker data from China and the US on the assumption that if economic slowdown is confirmed then there may be some scaling back of Fed tapering," Saxo Bank senior manager Ole Hansen said.
"But it is not really a runaway, we are just grinding higher and you could argue that the latest entrants to the market are looking for additional gains and if they don't get that they might be quick to pull the trigger again to get out," he said. "It looks like most people are not seeing the upside going much above $1,350/1,400."
U.S. data on Tuesday showed that home price gains slowed in December, underscoring a loss of momentum in the housing recovery, while February consumer confidence fell short of expectations.
European equities fell on Wednesday, tracking Asia.
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