Gold at fresh record as economic worries intensify

09:41, August 04, 2011      

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Gold futures on the COMEX Division of the New York Mercantile Exchange rose to a record 1,675.90 dollars an ounce as global equity markets tanked due to worldwide economic concerns, thereby boosting demand for gold as an investment haven.

The most active gold contract for December delivery jumped 21. 80 dollars, or 1.3 percent, to settle at 1,666.30 dollars per ounce.

An ADP Employment Report released Wednesday showed U.S. company payrolls rose by a pale 114,000 in July, pointing to a modest job growth in the fragile U.S. economy.

Market analysts noted that even though the report marginally raised U.S stocks, equity markets in Asia and Europe still tumbled as economic fears continued to push investors toward safe havens such as bonds and gold. Recent manufacturing data from China, Europe, and the U.S. indicated slowing growth while rattled bond markets in debt-plagued Italy and Spain kept markets on edge and investors on alert.

"Traders continue to chart unchartered territory and despite knowing how technically overbought this market is," said Mike Daly, a gold specialist with PFGbest here in Chicago. "However, until the world's economic climate changes I feel savvier investors will continue to trade the trend," Daly added.

Silver for September delivery rose 1.666 dollars, or 4.2 percent, to 41.758 dollars per ounce. Platinum for October delivery dropped 8.5 dollars, or 0.5 percent, to 1,785 dollars per ounce.


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