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Gold rallies 2 pct on haven buying, hits euro high

Jan Harvey
Reuters [1]
Friday, Jan 30, 2009

Gold rallied more than 2 percent in Europe on Friday to a three-month high, as investors once again sought the safety of bullion from volatility in other assets.

Market talk of China taking an interest in gold as an alternative to U.S. Treasuries, and of a European fund buying bullion, also helped boost prices.

Trading is expected to be choppy this session as key technical levels are pressured, dealers said.

Spot gold <XAU=> climbed to a high of $926.10 an ounce, and was quoted at $918.50/920.50 an ounce at 1018 GMT, up from $906.75 in New York late on Thursday. Gold priced in euros <XAUEUR=R> hit a record high of 720.53 euros.

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Gold has risen around 3 percent this week as investors have scrambled for the safety of gold and bullion-backed assets such as exchange-traded funds.

  • A d v e r t i s e m e n t

“The ETFs were up another 15 tonnes yesterday,” Simon Weeks, director of precious metals at the Bank of Nova Scotia, said, adding safe haven demand was driving the market.

Full article here [1]