Gold rose to $1,488.68

Monday, 18 April 2011 09:42

Gold rose to $1,488.68 an ounce in early Asian trading. Gold for June delivery in New York also climbed to an all time high of $1,489.70 an ounce.

Gold has gained on increased demand for commodities and on the concern that currencies may be debased as central banks stimulate their economies, it is up 31% this year alone. Gold held in exchange traded products rose 19.3 metric tons to 2,069.95 tons on April 15.

Few investors take physical delivery of bullion most months only have small % of open interest exercised. Physical deliveries have slowed as gold hit records this year, as most investors trade on margin and can own 100 ounces of gold futures for small initial fees and margins rather than paying for 100 troy onces in full. 

Additional buying by the University of Texas System and Texas A&M University has also brought more focus on the commodity, they have taken delivery of 664,300 ounces of bullion worth almost 1 billion in the last week.