Business | Markets
Gold goes over $970 to reach four-month high
Gold rose to a four-month high above $970 an ounce on Monday as lingering fears of financial market instability and rising inflation boosted buying of the metal for its safe haven appeal.
- Agencies
- Published: 00:08 July 15, 2008
London: Gold rose to a four-month high above $970 an ounce on Monday as lingering fears of financial market instability and rising inflation boosted buying of the metal for its safe haven appeal.
Spot gold climbed $970.70 an ounce - the highest since March 19 -before easing to $968.15/$969.150 an ounce at 1509GMT from $963.00/965.00 late in New York on Friday.
Gold has soared since fears over the future of US mortgage firms Fannie Mae and Freddie Mac came to the fore on Friday, dragging down equities and the dollar.
US stocks slipped on Monday as investors worried that plans to shore up the government sponsored mortgage companies won't be enough to allay concerns about the fallout from the housing slump in the world's biggest economy.
"The issue of Fannie May and Freddie Mac's stability definitely brought the fear factor back," said Daniel Hynes, metals strategist at Merrill Lynch.
"A month ago, gold looked like it might have struggled to get back towards $1,000 but it now looks like it could be heading back towards those levels."
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