Friday, August 19, 2011
Gold hits new record as equities fall
Gold jumped to a record high and global equity markets extended a sharp sell-off as fears of a global recession and a funding crunch for regional banks in Europe intensified.
Gold prices rallied more than 2.5 percent as investors sought refuge from a second day of hefty losses in stocks as equity markets reeled on fears of stalling economic growth around the world.
"At the moment the market is just looking for relative safe havens," said Mitsui Precious Metals analyst David Jollie. "You can see that in the sell-offs across equity markets overnight. The strength of gold is the other side of the coin from that."
Spot gold jumped to record US$1,877 an ounce, and was last trading near US$1,855, on track for its biggest one-month rise in nearly 12 years in August.
The euro recovered early losses in thin trade, gaining momentum on stop-loss selling. But it remained at risk of coming under renewed pressure from a darkening global economic outlook and worries about funding in the euro zone banking sector.
Brent crude rose after Spanish measures to address Spain's economic weakness helped to reverse some of the deep sell-off triggered by concern the world is heading back into recession.
Brent was trading 9 cents higher at US$107.08 a barrel. US crude shed 96 cents to US$81.45 a barrel.
Gold prices rallied more than 2.5 percent as investors sought refuge from a second day of hefty losses in stocks as equity markets reeled on fears of stalling economic growth around the world.
"At the moment the market is just looking for relative safe havens," said Mitsui Precious Metals analyst David Jollie. "You can see that in the sell-offs across equity markets overnight. The strength of gold is the other side of the coin from that."
Spot gold jumped to record US$1,877 an ounce, and was last trading near US$1,855, on track for its biggest one-month rise in nearly 12 years in August.
The euro recovered early losses in thin trade, gaining momentum on stop-loss selling. But it remained at risk of coming under renewed pressure from a darkening global economic outlook and worries about funding in the euro zone banking sector.
Brent crude rose after Spanish measures to address Spain's economic weakness helped to reverse some of the deep sell-off triggered by concern the world is heading back into recession.
Brent was trading 9 cents higher at US$107.08 a barrel. US crude shed 96 cents to US$81.45 a barrel.
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