Gold Rockets Higher, Nears $1,900
Tweet
Share
E-mail
Gold continues its surge Friday morning as investors see it as the only safe haven with markets around the world crumbling.
Gold for October delivery last traded at $1,874.10 per ounce, up $54.20. The day's range has been $1,822.40-$1,878.80.
The precious metal has been the right place to be whether we are in a deflationary environment or an inflationary one.
With no end in sight to easing from central banks around the world, the devaluing of paper currency is seen as a direct effect and gold is seen as one of the only places to protect wealth in an environment such as this.
Not only are private investors moving into gold, but central bankers themselves have been moving reserves into gold holdings. Central banks purchased 69.4 tonnes of gold during the second quarter, according to the World Gold Council.
Total second-quarter global gold demand measured 919.8 tonnes, worth a near-record $44.5 billion, the World Gold Council said. Demand in India and China led the way, with the two markets accounting for 52 percent of total bar and coin investment and 55 percent of global jewelry demand.
"The impact of the European sovereign debt crisis, the downgrading of US debt, inflationary pressures and the still-fragile outlook for economic growth in the West are all likely to drive high levels of investment demand for the foreseeable future," the World Gold Council said in its report yesterday.
Investors in the U.S. have been playing gold mainly with the ETF SPDR Gold Shares (NYSE: GLD), which is up 31 percent so far this year.
Gold for October delivery last traded at $1,874.10 per ounce, up $54.20. The day's range has been $1,822.40-$1,878.80.
The precious metal has been the right place to be whether we are in a deflationary environment or an inflationary one.
With no end in sight to easing from central banks around the world, the devaluing of paper currency is seen as a direct effect and gold is seen as one of the only places to protect wealth in an environment such as this.
Not only are private investors moving into gold, but central bankers themselves have been moving reserves into gold holdings. Central banks purchased 69.4 tonnes of gold during the second quarter, according to the World Gold Council.
Total second-quarter global gold demand measured 919.8 tonnes, worth a near-record $44.5 billion, the World Gold Council said. Demand in India and China led the way, with the two markets accounting for 52 percent of total bar and coin investment and 55 percent of global jewelry demand.
"The impact of the European sovereign debt crisis, the downgrading of US debt, inflationary pressures and the still-fragile outlook for economic growth in the West are all likely to drive high levels of investment demand for the foreseeable future," the World Gold Council said in its report yesterday.
Investors in the U.S. have been playing gold mainly with the ETF SPDR Gold Shares (NYSE: GLD), which is up 31 percent so far this year.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA's Hartnett sees dollar slump, risk selloff if bond intervention fails
- Anthropic hires Google chip veteran as it pushed into hardware - Bloomberg
- NVIDIA (NVDA) in talks to invest in data-center company Cloverleaf Infrastructure - WSJ
Create E-mail Alert Related Categories
Commodities, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
