U.S. benchmark gold futures closed on Tuesday at a 25-year high, above $700 an ounce, driven by relentless investor buying on geopolitical tensions and traders' expectations of further price gains ahead.
Market talk that economists urged China to quadruple its gold reserves to 2,500 tonnes from the current 600 tonnes because its foreign exchange reserves had become the world's largest also stoked the gold rally, dealers said.
A jump in spot gold, record-high platinum and soaring copper and aluminum prices amid a boom in precious and industrial metals contributed to the 3.2 percent rise as well.
"I think that platinum helped gold more than anything else," said a gold trader at a precious metals refiner in New York. "But that China story certainly helps."
June delivery gold on the New York Mercantile Exchange's COMEX division settled at $701.50 an ounce, up $21.60 on the day.
NEW YORK (Reuters)
Investors and gold mining companies are certainly enjoying the day.
Tuesday, May 09, 2006
Monday, May 08, 2006
Gold Prices May 8 2006
May 8
Gold for immediate delivery fell $4.30, or 0.6 percent, to $679.50 an ounce at 4:48 p.m. London time after touching $671. Prices earlier reached $686.60, the highest since October 1980.
Gold futures for June delivery dropped $3.10, or 0.5 percent, to $681.20 an ounce on the Comex division of the New York Mercantile Exchange.
The market was supported by a weak dollar in early dealings and by active buying by Japanese investors returning after a holiday, traders said.
But prices fell back on news that Iranian President Mahmoud Ahmadinejad sent a letter to President George W. Bush, suggesting ways to ease tension over Iran's atomic program.
Gold has gained 32 percent this year due to tension in the Middle East, firm oil prices and a volatile dollar. The price has doubled in three years.
NineMSN Investor News Link
Gold for immediate delivery fell $4.30, or 0.6 percent, to $679.50 an ounce at 4:48 p.m. London time after touching $671. Prices earlier reached $686.60, the highest since October 1980.
Gold futures for June delivery dropped $3.10, or 0.5 percent, to $681.20 an ounce on the Comex division of the New York Mercantile Exchange.
The market was supported by a weak dollar in early dealings and by active buying by Japanese investors returning after a holiday, traders said.
But prices fell back on news that Iranian President Mahmoud Ahmadinejad sent a letter to President George W. Bush, suggesting ways to ease tension over Iran's atomic program.
Gold has gained 32 percent this year due to tension in the Middle East, firm oil prices and a volatile dollar. The price has doubled in three years.
NineMSN Investor News Link
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