Gold hits $US1600 an ounce
Spot gold touched a record high of $US1603.29 an ounce, as concerns over debt contagion in Europe and failing confidence in the US economy attracted investors.
Gold has passed through the $US1600 an ounce for the first time, highlighting its appeal to investors as a store of wealth in turbulent economic times.
In New York, the most-active contract, for August delivery settled up $US12.30, or 0.8%, at $US1602.40.
In Europe, spot gold touched a record high of $US1603.29 an ounce, as concerns over debt contagion in Europe and failing confidence in the US economy attracted investors.
Two events dominated investor sentiment: stress tests that revealed some European banks could fail, while negotiations to raise the US borrowing limit remain stalemated and credit agencies are threatening to downgrade US government debt.
In addition, the cost of insuring the sovereign debt of Italy, Spain, Ireland, Portugal and Greece has risen.
Observers says gold's march above the psychologically important $US1600 mark is likely to draw interest from investors who place bets based on patterns in trading activity.
Some investors look to gold's performance near such round numbers as a sign of the market's momentum.
Gold futures have surged 44% since worries about Greece's fiscal situation began to pile up at the beginning of 2010.
The amount of gold held by exchange-traded funds, popular tools for investors to gain exposure to gold, reached a record high on Friday at 2156.4 tonnes, according to Barclays Capital.
Nevil Gibson
Tue, 19 Jul 2011
Tue, 19 Jul 2011
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Gold hits $US1600 an ounce
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