Gold inches up as global economic fear grows

08:28, May 26, 2010      

Email | Print | Subscribe | Comments | Forum 

Gold futures on the COMEX Division of the New York Mercantile Exchange continued to rally on Tuesday, driven by investors' increasing pessimism about future global economic growth. Silver and platinum both retreated.

The most active gold contract for June delivery rose 4.0 U.S. dollars, or 0.3 percent, to finish at 1,198.0 dollars an ounce.

The euro extended losses against the U.S. dollar on Tuesday as the fact that the debt crisis has spilled into Spain, a much larger European economy, worsened investors' concern that the harsh austerity measures which eurozone nations are forced to take would let European economy lag behind for an extended period of time and raise the risk of a double-dip recession of global economy.

A disappointing report on U.S. home prices also accounted for the weak tone. The Standard & Poor's/Case-Shiller 20-city home price index in March dropped 0.5 percent from February, suggested that the U.S. housing market still lacks vigor, given the near historically low mortgage rates.

Gold surged to break 1,200 dollars per ounce earlier in the session, as the uncertainty about the spillover effect of the European sovereignty debt crisis on U.S. and world economy as well as the escalating tensions on the Korean Peninsula fueled investor risk aversion and spurred fresh demand of gold. But the surge in dollar and the sharp break in stock market forced gold to pare some of its earlier gains prior to the close and end moderately higher.

July silver was down 21.9 cents, or 1.2 percent, to settle at 17.781 dollars per ounce. July platinum trounced 42.6 dollars, or 2.8 percent, to close at 1,491.9 dollars an ounce.

Source:Xinhua

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • An Indian artist colours clay idols of Goddess Durga for the upcoming Durga Puja festival in Calcutta, capital of eastern Indian state West Bengal on Sept. 27, 2011. The festival celebrates the homecoming of Mother Goddess Durga and the victory of good over evil, dramatized by the goddess' demolition of the evil buffalo demon, Mahishasura. (Xinhua/Tumpa Mondal)
  • A model presents a creation of new upcoming designer Sergei Grinko at the Milan Fashion Week Women's Wear Spring/Summer 2012 in Milan, northern Italy, Sept. 27, 2011. The Milan fashion week closed on Tuesday. (Xinhua/Wang Qingqin)
  • Yu Guangyao (2nd R), president of Shanghai Shentong Metro Co., Ltd, bows his apology at a press conference on the subway trains collision accident happened Tuesday afternoon, in east China's Shanghai Municipality, Sept. 27, 2011. By 8:30 p.m. (1230 GMT) Tuesday, a total of 271 injured people in the accident have received medical treatment in hospitals, among them 180 have been dispatched. Other 61 injured people are still in hospital, in which 30 are under emergency observations. No critical injuries have been reported. (Xinhua/Chen Fei)
  • Children visit the Confucian temple in Tainan, southeast China's Taiwan, Sept. 27, 2011. A ceremony will be held at the temple to commemorate Confucius (551-479 BC) on Sept. 28, the birthday of the ancient Chinese thinker and educationist and the annual Teacher's Day of Taiwan in honor of him. (Xinhua/Ren Zhenglai)
  • Fourth-grader Ma Lianghai (left) and third-grader Ma Linxiang are engrossed in their work during art class at Zhaojia Elementary School in Dongxiang, Gansu province, on Sept 18. (Photo by Xu Jingxing/China Daily)
Hot Forum Discussion