Gold Jumps as Safe-Haven Buying Continues

by on October 7, 2008 · 0 comments

Investors concerned over the financial markets continued to seek solace on Tuesday with the traditional safety of precious metals over a volatile stock market. New York silver, gold and platinum futures climbed 0.8 percent, 1.8 percent and 4 percent, respectively.

Bullion update ...As if to mark the latest surge, as of Monday, physical demand for the yellow metal has outstripped the U.S. Mint’s supply of several gold coins.

November crude moved above the $90 barrier after experiencing four previous day losses. It gained $2.25, or 2.6 percent, to end at $90.06 per barrel.

December silver gained 9 cents to close to $11.38 an ounce.

October platinum climbed $39 to end at $1012.20 an ounce.

December gold surged higher by $15.80 to close to $882 an ounce.


"Gold prices widened their trading range ($860 to $890 overnight) but the bias favored advances to higher ground, as safe-haven buying received further participants from among anxiety-ridden global investors," said senior analyst Jon Nadler at Kitco Bullion Dealers.

"As the going got tougher, gold got going. The metal once again faces a good opportunity to make an assault on the $900 to $925 range – a feat that has run into a few snags of late," continued Nadler.


Gold generally follows oil’s direction and moves opposite to the U.S. dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge or safe-haven during times of high inflation and economic uncertainty.

Check out CoinNews market resources at Live Silver, Gold & Platinum Spots, the Silver Coin Calculator and the Inflation Calculator.

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