Precious metals eye new all time highs!
Gold has achieved its highest historical mark yesterday in New York as it soared to 1249.60, before closing at a record $1237.10 per ounce gaining 0.46%. Silver and platinum were no exception as they climbed up by 0.98%, 2.00% respectively and closed at 19.52, 1737.00 respectively.
Investors were seeking a safe haven and alternative investments in precious metals, amid anxiety towards the possibility of the Greek crisis spreading to other European countries, sided by heavy fluctuations in stock markets and expected tightening policy in China.
Commodity indices gained yesterday, as S&P GSCI added 4.13 points and closed at 520.95, while RJ/CBR ascended 1.87 points to close at 266.82. Commodity indices were fed by rising oil prices, aided by demand on precious metals and other metals, such as copper.
Stock indices were also on the rise, with Dow Jones advanced 1.38% and the German Dax gained 2.41%. Investors, though, have lost some faith in stock markets after last week's slump, expressed by the general downtrend the market is experiencing despite yesterday's gains. Stock market fluctuations were accompanied with turbulence in the Forex market, where the Euro is still under stiff pressure, which is the main reason behind the European investors' surge towards gold.
Precious metals are enjoying the peak of popularity so far with silver climbing to the highest mark since March 19, 2008, while platinum is nearing the August 2008 record after conquering the $1752.00 mark last month.
The dollar and fluctuating oil lost their influence over precious metals, especially gold, suggesting an effect from speculations apart from safe haven demands which were bolstered by fears of a spreading Greek crisis.
Gold is still following the suggested uptrend and the possibility of a 1300.00 mark is not excluded, while silver is expected to lead the $21 plank. These expectations have strong support form recent economic data, though we must not forget that heavy fluctuations and corrective down movements are also expected to accompany the bullish trend, due to speculations and profit-taking.