Gold surges to a fresh all time high

09:10, May 13, 2010      

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Gold futures on the COMEX Division of the New York Mercantile Exchange built on Tuesday's gains and hit an all time high on Wednesday, supported by safe-haven demand triggered by the growing inflation fear. Silver surged 1.9 percent to reach its highest level since March 2008, and platinum also rallied.

The most active gold contract for June delivery surged 22.8 U.S. dollars, or 1.9 percent, to finish at 1,243.1 dollars, and once touched 1,247.7 dollars an ounce, which is the highest level for a most-active contract since gold futures started trading in 1974.

Investors worried that that although the monumental measures taken by EU and IMF may prevent Greece from facing immediate default, it could not solve the fundamental structural problems of eurozone economy, or stop Greek debt crisis from spreading to other European countries. The speculation that the 750 billion euro bailout plan may only serve as a down payment on even larger financial aid, has weighed on euro on Wednesday and encouraged investors to flock to gold for the purpose of safe-haven, due to the fact that gold is traditionally considered as a safe storage of value, and investors inclined to buy the bullion at times of economic and financial turbulence.

Meanwhile, the fear that international financial support for debt-plauged eurozone countries will depress currencies and cause inflation also drove the gold price up today.

July silver surged 36.9 cents, or 1.9 percent, to settle at 19. 663 dollars per ounce. July platinum climbed 46.5 dollars, or 2.7 percent, to close at 1,747.3 dollars an ounce.

Source: Xinhua


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