Polya Lesova & Joyce Koh
July 12, 2008
Gold futures rallied Friday to their highest level since mid-March, as soaring oil prices, mounting tensions between Iran and the West and a sell-off on Wall Street prompted investors to seek a safe haven in the precious metal.
Gold for August delivery rallied $18.60 to end at $960.60 an ounce on the New York Mercantile Exchange.
Earlier, the contract hit an intraday high at $967.30 an ounce, its highest level since March 18 when gold rose as high as $1,012.60 an ounce.
Gold posted a weekly gain of $27, or 2.8%, from last Thursday’s closing level of $933.60 an ounce.
“Safe-haven oriented gold buying was the theme, but the gain is clearly attributable to the turnaround in oil and the apparent imminence of an air strike against Iran,” said Jon Nadler, senior analyst at Kitco Bullion Dealers, in a research note.