June 17, 2010
|Investors were tentatively buying stocks but also hedging their bets with gold.|
Gold prices were gunning to break their record high Thursday as an uncertain stock market fueled demand for gold as a safe haven asset.
Gold for August delivery was adding $11.70 to $1,242.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price today has traded as high as $1,243.40 and as low as $1,231. The U.S. dollar index was falling 0.33% to $85.79 while the euro was rising 0.41% to $1.23 against the dollar. The gold spot price Thursday was popping $13, according to Kitco’s gold index.
Investors were tentatively buying stocks but also hedging their bets with gold. Lackluster risk appetite was buoying higher prices, and momentum buying could push gold past its record of $1,254 an ounce.
Gold is an attractive place for investors to put their money in uncertain times, as it’s money that retains its value. The U.S. dollar has also been considered a safe haven, but as headline risks from the BP oil spill, Greece labor strikes and Spain’s debt issues continue to scare traders, hard assets become more attractive than paper currencies.
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