US gold futures jumped more than 3 percent to a seven-month high by midday on Tuesday as risk averse investors sought safety following reports warning of deepening recession in Eastern Europe that spread fears that banks and financial companies could see renewed problems.
Gold for April delivery surged $31.80 or 3.38 percent to $974.0 an ounce on the COMEX division of the New York Mercantile Exchange. Range extends to seven-month high at $974.90 from low at $937.30. As global economic news worsens, investors flock to gold in safe haven buying, said traders. Credit rating agency Moody's Investor Service's statement that severe Eastern Europe recession would pressure financial ratings of local banks and Western parents.
COMEX gold stocks eased 32 to 8,428,990 ounces as of Friday. Spot gold was advanced to $970.70 per ounce, up sharply from the late Friday quote at $937.80 an ounce. COMEX March silver soared 45.0 cents, or 3.30 percent, to $14.0750 an ounce. The contract's range ran higher between $13.48 and $14.12 an ounce, its highest since August 2008.
COMEX silver stocks edged up by 228 ounces to 124,339,571 ounces on Friday. Spot silver moved up to $14.08 an ounce from $13.60 an ounce late Friday. NYMEX April platinum jumped $37.0, or 3.49 percent, to $1,098.00 an ounce, pulled up as precious metals firmed across the board. April platinum ran up to its highest level since October 2008.
Platinum's upside should be limited as demand from carmakers will remain weak with car sales off sharply, said traders. Spot platinum increased to $1,088 per ounce. March palladium gained $2.50 to $219.0 an ounce. Spot palladium firmed to $216.0 an ounce.
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