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Gold hits 17-year high, ‘and going UP!
GOLD surged to 17-year highs yesterday,lifted by a combination of high oil prices, increased demand from Asia and a negative outlook on the US economy after Hurricane Katrina.
Analysts remained bullish on the metal, saying bullion could reach $500/oz by early next year.
Gold futures gained 1% to $459/oz yesterday, the highest level since June 1988, as the prospect of economic slowdown and signs of rising inflation drove US investors to the safety of gold.
Gold also rose yesterday after Argentina’s central bank said it might increase gold reserves as a hedge against inflation and protection against a financial crisis.
Wiphold Treasury Solutions’ chief economist, Craig Zaayman, said: “The current surge in gold prices is as a result of a culmination of a whole lot of factors, which have contributed to slowly driving the market up.”
Demand from Asia, particularly China and India, had increased ahead of the festival season.
Platinum is also rising, now selling at $922.00/oz
