Will global investors accumulate precious metals bullion as a safe haven for wealth?
"Gold hits $970 amid strong Asian demand
Gold prices surged to a fresh seven month high on Tuesday, trading above $970 a troy ounce and hitting record highs denominated in euros and sterling, boosted by strong buying by Japanese and Chinese investors.
The strong buying in Tokyo came a day after Japan, the world’s second largest economy, reported it suffered its worst economic slump in 35 years, with the economy contracting 3.3 per cent quarter-on-quarter in the last three months of 2008.
The rush the gold safety was exacerbated by concerns about Western banks’ exposure to Eastern European countries and signs that Russia’s central bank plans to buy more gold for its official reserves, traders said.
John Reade, a metals strategist at UBS in London, said that investment demand was 'super-strong' and analysts say that the precious metal is likely to test the $1,000 level in the near future. Gold hit a nominal all-time high of $1,030.80 last March.
In London, spot bullion rose to $970.90 an ounce, up from Monday’s last quote of $941.05, and the highest level since mid-July. In New York, the less relevant Comex June gold futures surged to an intraday high of $975 an ounce.
Silver and, to a lesser extent, platinum and palladium rose, boosted by investors buying. In London, spot silver traded as high as $14.07 an ounce."
