Good Times For The Certified Gold Market Posted by James Randolph on June 09, 2010
Good times for the certified gold market
June 9, 2010 – In the certified gold market, gold prices continue to soar. The current high is $1,250 an ounce, even as the European euro’s outlook does not appear exciting. The European economy’s recovery looks bleak following UK’s plan to scale down its own government borrowing.
As spot gold prices in the certified gold market touched a high $1,251.20 an ounce, compared to $1,246.45 an ounce at 1137 GMT against $1,238.05 late on Monday, the U.S. gold futures for August delivery stood at $1,254.50. Making hay while the gold shines, this precious metal is clearly taking advantage of the prevalent fear about the euro’s sovereign debt crisis and its impact on the global economy.
Daniel Briesemann, analyst at Commerzbank, opined that the current gold prices are an outcome of the fear that another recession might be around the corner, hence the demand for gold as a safer investment option. "Gold is currently rising in dollars and in euros," he added. "There is a lack of confidence, given the uncoordinated measures against the sovereign debt crisis, which is obviously (affecting) both currencies."
Gold priced in euros also stood at a record 1,050.86 euros an ounce, while gold priced in sterling and Swiss francs also saw a new high at 869.87 pounds an ounce and 1,450.40 francs an ounce. As Hungary faces a deficit, world stocks also took a beating last Friday. The certified gold market is poised to see even more glittery times, thanks to the widespread fear about the European economy.
Silver bid at $18.32 an ounce compared to $18.09, with platinum at $1,516.25 an ounce compared to $1,512, and palladium at $429.23 against $430.
Senior Staff Writer – Certified Gold Exchange