Wednesday, July 27, 2011

Surprise, surprise: Gold Surges Toward Record as ‘Go-to Asset’

Gold surged to an all-time high as investors sought to protect their wealth against the possibility of a U.S. default that may come as soon as next week amid a standoff over the country’s $14.3 trillion debt limit, according to Bloomberg.

Spot bullion rose as much as 0.4 percent to $1,625.70 an ounce, beating the previous peak of $1,624.07 set July 25, before trading at $1,624.55 at 2:09 p.m. in Singapore. The December-delivery contract gained as much as 0.5 percent to a record $1,628.10 an ounce on the Comex in New York…

“Gold, along with a few select currencies, is increasingly the go-to asset as investors seek it out for its safe-haven properties,” James Steel, an analyst at HSBC Securities USA Inc., wrote in a note. “The weakness in the U.S. dollar, the result of the debt impasse, is reinforcing the gold rally.”

Holdings of the metal in exchange-traded products rose 0.3 percent to a record 2,128.229 metric tons yesterday, data compiled by Bloomberg show. Cash and futures prices in China also reached all-time highs today…
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Read more at http://www.bloomberg.com/news/2011-07-27/gold-climbs-toward-record-as-go-to-asset-amid-u-s-debt-ceiling-impasse.html

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