Gold climbs to record above $1,910 on growth fears
SINGAPORE (Reuters) - Spot gold soared to an all-time high above $1,910 on Tuesday, on course for its biggest monthly rise in 29 years, as persistent worries about global economic growth burnished bullion's safe-haven appeal.
Spot gold gained 0.8 percent to strike an unprecedented $1,911.46 an ounce, before easing to $1,909.49 by 0023 GMT (1:23 a.m. British time).
U.S. gold rose 1.4 percent to a record high of $1,917.9, and stood at $1,912.10.
Spot gold was headed for a seventh consecutive session of rise and a monthly gain of 17 percent, highest since August 1982, as a dismal outlook for the U.S. economy and fear of a worsening euro zone crisis drove nervous investors to bullion.
"We are not hearing much good news out of Europe or the United States," said Darren Heathcote, head of trading at Investec Australia.
"The picture looks pretty bleak in the short term... For the time being investors are happy looking at gold as safe haven in these troubled times, and will continue to do so until we see something positive and sustainable."
The current bull run in gold could mirror the climb seen in 1980, and prices have increasingly become emotion-driven, said Reuters market analyst Wang Tao.
Market participants are eying an annual central bank conference in Jackson Hole, Wyoming, where the U.S. Federal Reserve Chairman Ben Bernanke is scheduled to speak on Friday.
Spot silver rose to $44.20, its strongest since early May, tracking gold's strength. It was later trading at $43.89.
Spot platinum hit a three-year high at $1,912 an ounce, before easing to $1,910.49.
The Relative Strength Index on spot platinum rose to 76.7, its highest since last October. A reading above 70 suggests the underlying market is overbought.
(Editing by Himani Sarkar)
- Tweet this
- Share this
- Digg this
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.