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Gold Settles Close to 1,900-dollar Mark
Aug 23,2011 13:21CST
industry news
Source:SMM
Gold futures on the COMEX Division of the New York Mercantile Exchange surged to record level on Monday, the sixth straight rise in a row, amid increasing safe- haven demands.

2011-08-23 09:09:32 CHICAGO, Aug. 22 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange surged to record level on Monday, the sixth straight rise in a row, amid increasing safe- haven demands as investors feared global economy would further worsen.

The most active gold contract for December delivery added 39.7 U.S. dollars, or 2.1 percent, to 1,891.9 dollars per ounce.

Market analysts said investors' concerns about the validity and efficacy of the U.S. debt deal, uncertainty about further deficit reduction suggestions as well as the worsening of the European debt crisis all helped push gold even higher.

The Federal Reserve would hold its annual symposium this week to discuss the economic outlook, amid speculation that it may signal a third round of asset purchases to boost the faltering recovery.

Aside from economic factors, the growing geopolitical tensions also added to the bullish sentiment, as Libya rebels have controlled parts of the capital Tripoli, pushing the Gaddafi regime to the edge.

As a result, investors rushed to gold market for safety investment. The gold holding of world's largest gold-backed exchange-traded fund, SPDR Gold Trust, increased four metric tons to 1,290 metric tons on Friday, which is closer to the record of 1, 320 metric tons.

Gold price has hiked for six sessions and has settled at a record for five of the past six trading days. On Monday, it closed a bit below the 1,900-dollar mark and most analysts believed that this mark would be broken "sooner or later."

Silver for September delivery gained 89.3 cents, or 2.1 percent, to 43.325 dollars per ounce. Platinum for October delivery rose 30. 8 dollars, or 1.6 percent, to 1905.7 dollars per ounce.


 

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