💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Gold futures jump to fresh record on global growth concerns

Published 08/04/2011, 10:35 AM
UBSN
-
GC
-
HG
-
SI
-
Investing.com – Gold futures extended gains on Thursday, climbing to a fresh record high for the third consecutive day as concerns that the U.S. economic recovery was stalling and lingering fears over sovereign debt contagion in the euro zone boosted demand for safe haven assets.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,681.45 a troy ounce during U.S. morning trade, climbing 1%. 

It earlier rose as much as 1.12% to trade at a record high of USD1,683.15 a troy ounce, eclipsing the previous high of USD1,674.15 a troy ounce it hit in the previous session.

Gold prices have climbed to record highs in ten of the past 17 sessions.

The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits last week eased down by 1,000 to a seasonally adjusted 400,000, confounding expectations for an increase to 406,000.

However, the previous week’s figure was revised up to 401,000 from 398,000. 

Meanwhile, concerns over the risk of sovereign debt contagion in the euro zone intensified earlier after Spain’s Treasury auctioned EUR3.3 billion of bonds at higher interest rates than at an auction last month. 

Following the auction, the yield on Spanish 10-year bonds approached the 7% mark that prompted peripheral euro zone nations, Greece, Portugal and Ireland to seek bailouts.

Global financial service provider UBS raised its one-month gold price forecast to USD1,725 per ounce and lifted its three-month price estimate to USD1,850 an ounce, up 13.5% from a previous estimate.

In a report published earlier, the lender said that gold prices were expected to remain well-supported in the near-term, citing sovereign debt woes in the U.S. and Europe, slowing global growth and higher inflation in Asian markets.

Elsewhere on the Comex, silver for September delivery edged 0.3% higher to trade at a 13-week high of USD41.91 a troy ounce, while copper for September delivery tumbled 1.7% to trade at USD4.265 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.