Gold Gets a Swine Flu Boost
Source: Commodity Online (4/28/09)
". . .gold prices jumped as prospects of investors flocking to the yellow metal rose."
Even as news spread about the virus reaching several countries and many nations advising people not to travel to the affected countries, gold prices jumped as prospects of investors flocking to the yellow metal rose.
Gold climbed to its highest in almost a month on Monday. Adding to that jump was the Akshaya Tritiya festival in India, an auspicious occasion for people to buy gold.
Fears of a global swine flu pandemic grew with new infections in the US and Canada on Monday, while millions of Mexicans have stayed indoors to avoid a virus that has killed more than 100 people.
Gold hit an intra-day high of $918.25 an ounce, its highest since April 2. The price had been boosted on Friday by the revelation that China had secretly raised its gold reserves by 75pc since 2003, confirming years of speculation that it had been buying.
Dealers expected gold to face resistance around $932 – an intra-day high seen in early April.