Gold climbs to four-month high on global safe haven flow

08:42, April 12, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange ended much higher and once touched its highest level since December on Friday, as dollar fell against a basket of six major currencies. Sliver and platinum both surged.

The most active gold contract for June delivery rose $9, to finish at $1,161.9.

Fitch Ratings lowered Greece's credit rating by two notches to BBB- on Friday, which is just above junk territory, and said that the outlook on the country remains negative, suggesting the possibility of further cut.

The latest downgrade further verified the fact that the fiscal challenge faced by Greece has been intensified, and the lack of effectiveness and clarity of the euro zone-IMF financial support mechanism. The concern over the fiscal health of debt-plagued Greece and other smaller euro zone economies trimmed early gains of euro, and boosted safe-haven flow to the precious metal.

Euro resumed advance on mounting speculation that Greece may receive international financial assistance to avert default, dragging the dollar down. Gold benefited and surged to its highest level since December as investors losing faith in currencies and turned to gold as a hedge versus uncertainty.

May silver surged 22.4 cents to $18.351 per ounce. July platinum rose $10.3 to $1,727.4 an ounce.

Source: Global Times


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