Futures Market News
Weak euro zone banks, cut growth projections drive gold to record prices
Aug 19, 2011 06:00 AM
Gold prices established record high prices Friday morning and drove toward the psychological barrier of $1,900 per troy ounce, driven by weak euro zone banks and slashed growth projections, according to published reports.
The precious metal this week has gained in value well more than 6 percent of their value, a weekly performance that is bullion's best in more than four years, according to Bloomberg. Claims for unemployment benefits in the U.S. increased while the market saw sale of homes drop. Projections for China's economic growth were reduced this week by Morgan Stanley and Deutsche Bank.
"It's not surprising in view of more concerns about Europe and terrible data out of the U.S.," trading head Darren Heathcote of Investec Australia told Reuters. "It looks unlikely that gold would fall particularly at the present time, given there's so much uncertainty and nervousness in the markets."
At 6:35 a.m. on Friday, gold futures gained 2.6 percent, a $47.30 rise to $1,869.30 per troy ounce.
Reuters reports investors abandoned stocks and gravitated toward gold futures amid deep concerns about banks and public finance systems in Europe.
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