Gold extends rally from debt concerns in Europe
Gold prices hit a record high on Friday as a result of investors turning to gold seeking a safe-haven against the debt crisis in Europe, which is curbing economic growth and might undermine a global recovery. From the fears, investors once again seek gold as an investment, which supports gold prices. Today the incline in gold prices resumes.
Friday, gold inclined $11.30 or 0.91% to close at $1255.65 an ounce while the dollar lost strength six major currencies which are measured by the Dollar Index, declined to close at 85.63 while recording a high of 85.76 and a low of 85.44.
Among other precious metals; platinum is traded at $1603.00; palladium at $497.00; silver at $19.42; while, copper is at $300.86. Turning to commodity futures we see last week, S&P GSCI closed at 510.56 points recording a high of 513.30 points and a low of 505.68 points while RJ/CRB Commodity closed at 262.93 points recording a high of 264.20 points and a low of 261.44.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at the record high of 1,307.963 metric tons. Gold was set in London on Friday at $1256.00 per ounce declining from $1244.00 per ounce during the AM fixing.
In addition, stocks in Asia climbed the most in nearly seven months, as China said it will relax the yuan versus the dollar as a way to battle inflation, this increased risk appetite in markets.
Turning to oil, we see that prices rose the most in six weeks as investors were attracted oil seeking a potential in profits, especially as China is leading the world into recovery, while also it is the second biggest energy consumer in the world following the United States.
Currently, spot gold is trading at $1264.11 an ounce recording a high of $1265.05 an ounce and a low of $1255.55 an ounce.