Gold Tops $900 on
Haven Demand as Equities Drop in Europe, Asia
BLUE CROWN FUTURES -
Commodities Futures & Options Trading
By Halia Pavliva
Jan. 23 (Bloomberg) -- Gold prices rose to a
three-month high, climbing past $900 an ounce in
both New York and London for the first time since
October, as global equity markets tumbled, boosting
demand for a safe harbor. Silver also jumped.
Europe’s Dow Jones Stoxx 600 Index slumped as
much as 2.6 percent to the lowest since April 2003
before rebounding. Tokyo’s Nikkei 225 sank 3.8
percent. This week, the MSCI
World Index of shares slid 4.1 percent, while
gold rose 6.7 percent.
“There is a lot of fear,” said Leonard
Kaplan, the president of Prospector Asset
Management in Evanston, Illinois, “Things are bad
here, but they are worse” in Europe, he said.
Gold futures for February delivery climbed $37,
or 4.3 percent, to $895.80 an ounce on the Comex
division of the New York Mercantile Exchange, the
biggest gain since Dec. 10. Earlier, the price
reached $903.80, the highest for a most- active
contract since Oct. 10.
Gold rose 5.5 percent last year, the eighth
straight gain, as the Standard & Poor’s 500
Index fell 38 percent.
“We are back to the same situation, where money
has nowhere to go and gold remains the safe haven of
choice,” Miguel
Perez-Santalla, a sales vice president at
Heraeus Precious Metals Management in New York, said
in an e-mail.
The rally may stall around $900, Perez-Santalla
said. “The industry that consumes the metal cannot
support that price.”
Gold for immediate delivery jumped as much as 5.4
percent, to $903.34 an ounce, in London. The metal,
which last topped $900 on Oct. 10, traded at $894.54
at 7:51 p.m. local time.
Silver futures for March delivery rose 57.5
cents, or 5.1 percent, to $11.94 an ounce. The price
climbed 6.5 percent this week.
Platinum, Palladium
Platinum futures for April delivery rose $23.10,
or 2.5 percent, to $958 an ounce on Nymex. The price
gained 0.5 percent this week and is up 1.8 percent
this month.
Palladium futures for March delivery climbed
$12.30, or 6.7 percent, to $197.10 an ounce. The
price rose 5.7 percent this week and is up 4.5
percent from last month.
Platinum and palladium are used mostly to make
pollution- control devices for cars and trucks.
“Actual consumption is close to nil, and until
the economy starts to turn around, this will be the
trend, so I wouldn’t bank on any rally” in
platinum and palladium, Perez-Santalla said.
To contact the reporter on this story: Halia
Pavliva in New York at hpavliva@bloomberg.net.
Last Updated: January 23, 2009 15:21 EST
