Gold near lifetime high as markets spook

08 Sep 2010

1

Singapore: With global stocks tumbling on Tuesday on renewed fears about the health of the global economy gold added to its gains today and is just a few dollars away from a lifetime high of around $1,264 an ounce struck in June.

The metal is well on track to record its tenth annual gain. If so, it would then register its longest run of yearly increases in more than 40 years.

Gold was up at $1,256.95 on Wednesday, after rising as high as $1,259.80 on Tuesday. It recorded its all-time high on 28 June this year.

The immediate trigger for the slide in the markets, and gold gaining attraction as a safe haven destination on Tuesday, was a report in the Wall Street Journal that said "stress tests" published more than a month ago underestimated some lenders' holdings of potentially risky government debt.

Experts now foresee gold breaching the $1,260 level as any economic news that is less than favourable will spook investors towards gold.

US gold futures for December delivery hit a high of $1,261.60 on Tuesday.

Tuesday also saw silver, which normally tracks gold, rallying to its highest levels since March 2008.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more