Investors looking for safer places to stow their assets pushed gold to a record price above $1,400 an ounce Monday as they become more worried about the global economy.
A combination of issues have created fresh worry among investors: Ireland's debt difficulties and two key global summits where leaders of major industrial and developing nations are discussing currencies, free trade and ways to help the world economy.
Also in the back of investors' minds is the prospect of inflation stemming the Federal Reserve's multi-billion bond-buying program.
"People are really concerned again and so I think we're seeing safe-haven buying," IG Markets Inc. CEO Dan Cook said.
"Whether you're holding dollars or euros or whatever you're holding, gold is that one kind of go-to product, a commodity as well as a currency type of trade," he said. "Nobody seems to be that willing to sell out of it."
Gold for December delivery added $5.50 to settle at a record high of $1,403.20 an ounce. Some analysts believe gold could go climb as high as $1,500 an ounce by year end.
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2 comments:
The big banks have tried hard to supress the price of gold, but their ability to do so will now be challenged hard. There are currently more contracts (comex) than there is gold in the world. The brokerage houses and banks have teamed up to supress its value by making contracts for gold which they do not own. Most people do not redeem the contracts for physical gold and so the gamble of entering contracts to sell gold which is not owned has always been a safe one for the criminal bankers.
I've notice gas has already gone up 10 cents per gallon at my local Royal Farms.
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