Concerns about sovereign debt, weak employment and a deflating housing market all helped push the price of gold up today. Gold futures for immediate delivery rose by $12.80 to $1247.60 per troy ounce, off of the yellow metal’s earlier record highs but its strongest performance of the week.
Gold was basically reacting to the generally poor economic news, from record highs on Greek credit default swaps to poor housing data. Silver followed suit, rising by 1.44 percent to $18.77 per troy ounce.
Sales of both new and existing homes fell precipitously last month, mostly as a result of the of the expiration of a federal tax credit which rewarded buying new or existing homes.
The Federal Reserve, as was widely expected, kept its target interest rate at 0 to .25 percent, signalling that it still lacked confidence in the economic recovery and feared that raising interest rates to ward off inflation -which has thus far failed to materialize – would put the whole system in jeopardy.
The day’s trading left gold and silver, along with copper and coffee futures, as the best-performing assets of the day.
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