Gold climbs near record as investors seek currency alternative
Wednesday, 9 June 2010
SINGAPORE, June 8 (Bloomberg): Gold climbed to within 0.3 per cent of a record in London as investors sought an alternative to currencies as concern over Europe's debt crisis mounts.
The metal climbed to all-time highs in Swiss francs and euros this week as the region's common currency Monday slipped to the lowest level in more than four years against the dollar. Gold touched a record $1,249.40 an ounce on May 14, while gold-backed exchange-traded fund holdings are near a peak.
"It shows low confidence in the euro zone," said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. "There's no confidence in euros, dollars and no confidence in other currencies. The only solution is to be on the safer side which is gold."
Gold for immediate delivery added as much as $5.93, or 0.5 per cent, to $1,246.18 an ounce and traded at $1,245.20 at 9:18 am local time. Bullion for August delivery was 0.5 per cent higher at $1,246.50 on the Comex in New York. Futures reached a record $1,249.70 on May 14.
The metal climbed to all-time highs in Swiss francs and euros this week as the region's common currency Monday slipped to the lowest level in more than four years against the dollar. Gold touched a record $1,249.40 an ounce on May 14, while gold-backed exchange-traded fund holdings are near a peak.
"It shows low confidence in the euro zone," said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. "There's no confidence in euros, dollars and no confidence in other currencies. The only solution is to be on the safer side which is gold."
Gold for immediate delivery added as much as $5.93, or 0.5 per cent, to $1,246.18 an ounce and traded at $1,245.20 at 9:18 am local time. Bullion for August delivery was 0.5 per cent higher at $1,246.50 on the Comex in New York. Futures reached a record $1,249.70 on May 14.