Gold Soars Above US$920 as Power Crisis Closes Mines

Source:

South Africa's three main gold producers and the world's biggest platinum miner suspended production at all their mines in the country on Friday due to a power crisis, helping send precious metal prices to new highs.

Gold and platinum hit all-time highs on Friday after a power crisis closed South African mines, with dollar weakness, firm oil and expectations of more interest rate cuts in the United States providing additional support.

South Africa's three main gold producers and the world's biggest platinum miner suspended production at all their mines in the country on Friday due to a power crisis, helping send precious metal prices to new highs.

Spot gold hit an intraday high of US$922.40 an ounce, surpassing last week's record and up more than 8% since tumbling to a three-week low around US$850 this week. Gold was last quoted at US$907.00/907.70 in New York on Thursday. In London, it hit a high of US$923.73.

"It's pointing at US$950. Now there's a power shortage...everything is in favour of gold for the time being," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, referring to the power crisis in South Africa.

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