Gold continues to rise amid recessionary fears

30 Jun 2010

Gold prices on Tuesday rose for the third time in four sessions amid slumping US consumer confidence and signs of slowing economic growth in China, boosting demand for the precious metal as an asset.

An index of consumer confidence in June fell more than analysts forecast, and a gauge of China's economy in April showed the smallest gain in five months. Global equities tumbled, and most commodities slumped.

Gold futures for delivery in August rose $3.80, or 0.3 per cent, to $1,242.40 on the Comex in New York. Earlier, the metal fell as much as 0.9 per cent.

Gold has jumped 13 per cent this year, reaching a record $1,266.50 on 21 June, partly on demand for a haven amid Europe's sovereign-debt woes. This month, the precious metal reached all-time highs in terms of euros, pounds sterling and Swiss francs.

Silver futures for September delivery dropped 8.3 cents, or 0.4 per cent, to $18.625 an ounce. Platinum futures for October delivery fell $15.30, or 1 per cent, to $1,555.10 an ounce on the New York Mercantile Exchange; while palladium futures for September delivery declined $18.05, or 3.8 per cent, to $454.40 an ounce, marking the biggest drop since 4 June.