The gold price
06/09/07: Gold price soars to six-week high - 6 September 2007
Early European trade showed gold trading at a six-week high today (September 6th), after spot gold prices took off in New York yesterday, hitting $680 per ounce by midday.
With gold heading higher over the past two weeks, the precious metal has revealed its appeal to a whole host of investors, leading to yesterday's soaring value.
On the one hand, the rise to a six-week high is attributed to the re-establishment of gold as the safe-haven investment of choice for traders.
Rising crude oil prices are seen to have contributed greatly to yesterday's jump, as gold took on its role as a favoured inflationary hedge in the face of near record high fuel prices.
Additionally, gold prices are being buoyed by speculative fund buying, also returning to gold after having faltered in the wake of recent sub-prime turmoil.
Michael Kempinski, senior precious metals trader at Commerzbank, said that the gold market was "still seeing good physical demand, with both natural physical buying, private investors and now funds coming back into the market".
'The recovery in the stock markets is also helping gold's performance," Mr Kempinski added.
With gold heading higher over the past two weeks, the precious metal has revealed its appeal to a whole host of investors, leading to yesterday's soaring value.
On the one hand, the rise to a six-week high is attributed to the re-establishment of gold as the safe-haven investment of choice for traders.
Rising crude oil prices are seen to have contributed greatly to yesterday's jump, as gold took on its role as a favoured inflationary hedge in the face of near record high fuel prices.
Additionally, gold prices are being buoyed by speculative fund buying, also returning to gold after having faltered in the wake of recent sub-prime turmoil.
Michael Kempinski, senior precious metals trader at Commerzbank, said that the gold market was "still seeing good physical demand, with both natural physical buying, private investors and now funds coming back into the market".
'The recovery in the stock markets is also helping gold's performance," Mr Kempinski added.
Goldbug, 06 Sep '07
Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.
