Gold updates21 Jun 2010 00:31
Ongoing uncertainty in the global economy has continued to support gold. The precious metal, which recently touched a record high of $1,252.11 per troy ounce, traded 0.30% higher at $1,232.52 an ounce on Thursday morning, after Spain’s bond auctions indicated that the market demanded a higher yield on the country’s debt, making it more expensive for the Spanish government to access funds from the primary bond market. This increases the strains on the country and exacerbates Europe’s sovereign debt woes. ‘The metal continues to be seen as a safe haven by investors,’ said James Moore of the TheBullionDesk.com. Prices should ‘remain supported by investment dip buying and could trade to a fresh record high should broader risk appetite decline again.’ Meanwhile, David Baker of Baker Steel Capital Managers believes the price of gold may reach $1,470 an ounce by early 2011.[3] That represents a 19% gain from the current spot price. Anthony Grech, London