Gold hikes to 6-week high on safe-haven demands

Gold hikes to 6-week high on safe-haven demands

Gold futures on the COMEX Division of the New York Mercantile Exchange rebounded on Monday, as EU debt problem further intensified, which prompted investors to buy gold as a safe-haven investment.

The most active gold contract for December delivery hiked 35 U. S. dollars, or two percent, to 1,791.1 dollars per ounce, the highest settlement in the latest six weeks.

Market analysts said that gold gained support from market concerns about political instability in Italy, where Prime Minister Silvio Berlusconi was reportedly under pressure to resign as the country's borrowing costs spiked to the highest level since the launch of the euro.

Meanwhile, it is reported that Greek Prime Minister George Papandreou agreed to step down, clearing the path for a new government. Besides, market hearsay went that Germany rejected the proposal to use its gold reserves to shore up the region's rescue fund.

A trader noted that all of bad news from the Europe helped underpin the precious metal market and there has been "evidence that speculators are returning", further contributing to support for gold.

Holdings of the SPDR Gold Trust, the world's biggest gold- backed exchange-traded fund, gained 1.513 metric tons to 1,245.064 metric tons on Nov. 4, the highest in more than a month.

Silver for December delivery rose 74.4 U.S. cents, or 2.2 percent, to 34.828 dollars per ounce. Platinum for January delivery also gained 28.7 dollars, or 1.76 percent, to 1,658 dollars per ounce.

Editor: Mu Xuequan

English.news.cn   2011-11-08 06:00:54 FeedbackPrintRSS
CHICAGO, Nov. 7 (Xinhua)