Gold extends gains on upbeat U.S. corporate reports

08:47, April 22, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange ended higher on Wednesday, as dollar tumbled versus the Canadian dollar and British pound. Silver surged and platinum climbed to the highest level in almost two years.

The most active gold contract for June delivery rose 9.6 U.S. dollars, or 0.8 percent, to finish at 1,148.8 dollars per ounce.

Morgan Stanley said on Wednesday that its first-quarter profit jumped to 1.4 billion U.S dollars, fueled by the surging revenue in its trading operations.

Apple announced late Tuesday that its profit rose 90 percent in its fiscal second quarter, easily beating market expectations in both profit and sales, driven mostly by sales of the iPhone.

The robust earnings reports have continued to enhance investors ' confidence about the sustaining economic recovery and boosted the outlook for the commodities markets, thus driving up the price of gold.

Meanwhile, although the Greek debt negotiation between the EU and the IMF has initiated, the concerns over Greek debt problems became worse, since the yields demanded by investors to hold Greek bonds have kept rising. Investors worried that the bail-out plan only focused on Greece and failed to meet the need of taking preemptive actions to help other EU economies like Portugal. The rising concern has driven investors to sell off euro and switch to gold for the purpose of safe-haven.

The Bank of Canada signaled that it would raise interest rates as soon as in June, which has sent the Canadian dollar soaring versus the greenback. The dollar also slipped against the British pound and yen, which increased the appeal of gold as safe-haven.

May silver rose 25.7 cents to 18.078 dollars per ounce. July platinum surged 18.5 dollars to 1,740.3 dollars an ounce.



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