Gold jumps 3 pct to 6-1/2 mth high on risk aversion

Reuters
Wednesday, February 11, 2009

LONDON, Feb 11 (Reuters) – Gold jumped 3 percent to a 6-1/2 month high on Wednesday as risk aversion prompted investors to buy gold and bullion-backed exchange-traded funds as a haven.

Prices pushed through tough resistance just above $930 to reach a peak of $944.30.

At 1528 GMT spot gold <XAU=> was quoted at $944.20/946.20 an ounce, against $914.15 late on Tuesday. U.S. gold futures for April GCJ9 delivery on the COMEX division of the New York Mercantile Exchange rose $29.10 to $942.80 an ounce.

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Prices have moved upwards throughout the day as investors digested details of a bank bail-out plan announced in the U.S. on Tuesday.

“There was a lot of disappointment behind the package, either because the measures weren’t concrete enough or because they thought they hadn’t tackled the root cause of the problem,” said BNP Paribas analyst Michael Widmer.

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