Demand for Precious Metals Strengthens

Wednesday, 6 April 2011 04:55

Gold gains again in London and New York as investors bought the metal on concern that global interest-rate increases will reduce growth and of the back of that the dollar slumped against the euro.

Gold for immediate-delivery rose as much as $3.35, or 0.2 %, to an all-time high of $1,459.07 an ounce. Gold for June delivery in New York rose 0.3 % to $1,456.50 an ounce after reaching a record $1,460.20.

The dollar declined as much as 0.6% against the euro before tomorrow’s meeting of the ECB, most expectations are that they will increase interest rates by 25 basis points to 1.25 %. 

Demand for precious metals strengthened over the past week as investors sought a shelter to protect their wealth against the conflict in Libya, the nuclear crisis in Japan and European sovereign debt concerns.

Spot silver was little changed at $39.3075 an ounce after earlier today climbing to $39.5013, the highest level since February 1980. An ounce of gold bought as little as 36.86 ounces of silver in London today, the lowest level since September 1983.

Gold has increased over 28 % in the past year, and silver by almost 55 %. Silver advanced to a 31- year high.Silver advanced to a 31- year high.Silver advanced to a 31- year high.