Will bullion prices rise as investors diversify from the stock market?
*Bloomberg, by Nicholas Larkin , September 4, 2009
“Gold Nears $1,000 on Stronger Demand From Investors for a Haven
Gold neared $1,000 an ounce in New York and London, missing the level by about 1 percent, as investors sought a haven on concern that a global recovery may be slower than expected. Silver fell from a 13-month high.
Gold futures reached $999.50 yesterday, the highest price since Feb. 23, and are heading for the biggest weekly gain since April, helped by lower equities. The MSCI World Index of shares is down 2.4 percent this week, heading for its first decline in eight weeks, on concern that a six-month rally has outpaced the prospects for earnings and economic growth.
‘It is likely that $1,000 will be tested again during the course of this month, and even today,’ Peter Fertig, the owner of Quantitative Commodity Research Ltd. in Hainburg, Germany, said by phone. ‘There has been a flight out of risky assets into gold as a safe haven. It’s been out of stocks.’ “
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