Gold Trades at Almost Six-Month High in London on Haven Demand
Source: Bloomberg (2/12/09)
"Gold traded at its highest in almost six months in London as investors sought a haven on speculation the global economy will continue to deteriorate."
Stocks fell in Europe and Asia today on concern that U.S. measures won't be enough to revive the economy. U.S. Treasury Secretary Timothy Geithner said he needs time to work out details of a bank-rescue plan of as much as $2 trillion. Holdings in the world's biggest exchange-traded fund backed by gold yesterday rose to a record for the 14th time in four weeks.
"Investment from the broader global market is still pouring into gold as a hedge against global uncertainties," London-based broker Marex Financial Ltd. said in a note today.
Bullion for immediate delivery gained as much as $7.39, or 0.8%, to $946.38 an ounce and traded at $943.05 by 12:51 p.m. local time. It rose the most in two weeks yesterday and has climbed 3.5 % this week. April futures added 10 cents to $944.60 in electronic trading on the Comex division of the New York Mercantile Exchange.
Platinum for immediate delivery advanced as much as $19, or 1.8%, to $1,088.50 an ounce, and was last at $1,078.50 an ounce. The metal, used in car pollution-control devices and jewelry, is heading for its biggest weekly gain since May.
Gold rose to $944 in the morning "fixing" in London, used by some mining companies to sell production, from $938 at yesterday's afternoon fixing. Spot prices, which reached a record $1,032.70 in March, climbed to $947.88 an ounce in London yesterday, the highest since July 23.