Gold hikes to 2-week high

09:26, February 09, 2011      

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Gold futures on the COMEX Division of the New York Mercantile Exchange rallied on Tuesday, hitting a 2-week high, amid heavy concerns over inflation after China raised its interest rate.

The most active gold contract for February delivery hiked 15.9 dollars per ounce, or 1.2 percent, to settle at 1,364.1 dollars.

Market traders noted that investors are buying gold as a hedge against inflation, as gold is usually held as a safe store of value.

China on Tuesday joined India, Indonesia, Thailand and the Republic of Korea in raising the interest rates this year to fight inflation, which sent a strong signal to the market that China was paying more attention to inflation.

Besides, gold is getting some support from a weak dollar and nervousness about northern Africa and the Middle East, said a trader.

Gold price has suffered a long time of weakness since the beginning of this year amid improving economic conditions around the world, after registering a 30-percent hike in 2010.

Meanwhile, silver for March delivery further surged 92.8 cents, or 3.16 percent, to 30.271 dollars per ounce on Tuesday. April's platinum also gained 17.7 dollars, or one percent, to 1,861.9 dollars per ounce.

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