Gold Fluctuates Near Record on Demand for Wealth Protection
By Nicholas Larkin
Sep 15, 2010
Gold fluctuated in London near yesterday’s record as investors sought protection from turmoil in the global economy and financial markets. Silver was little changed after climbing to the highest price since March 2008.
Gold reached a record $1,274.95 yesterday as holdings in the world’s biggest gold-backed exchange-traded fund gained the most in almost a month. The yen tumbled from a 15-year high versus the dollar after Japan’s government intervened for the first time since 2004 to curb gains that threaten an export-led recovery. The dollar was little changed against the euro.
“The volatility in currencies has led to consolidation in gold,” said James Moore, an analyst at TheBullionDesk.com in London. “While a brief pause is expected as traders and investors lock in profits, we expect further gains with diversification and technical buying to drive gold toward $1,300.”