By Jack Farchy
Published: May 7 2010 12:04 | Last updated: May 7 2010 12:04
Gold remained above $1,200 a troy ounce on Friday morning, within shooting distance of its all-time high, as panicky investors sought safety in the yellow metal.
Spot gold slipped 0.7 per cent from the previous day, but remained at levels only seen on five previous trading days. Gold soared 2.9 per cent on Thursday as US equity markets plunged late in the day triggering a massive flight from risk.
Most analysts and traders believe it is only a matter of time before gold surpass the all-time high of $1,226.10 it set on December 3 last year. Gold has hit record highs in euros, Swiss francs and sterling this week.
On Friday, the pound’s weakness in the wake of an inconclusive election result sent sterling-denominated gold to a fresh all-time high of £825.27 an ounce.
Other commodities markets appeared to catch their breath following a punishing bout of selling on Thursday. Oil prices, which have fallen about $10 this week, stabilised on Friday morning.
Nymex June West Texas Intermediate was up 44 cents at $77.55 a barrel, having plunged $2.86 on Thursday. The US benchmark has fallen over 10 per cent since Monday, when positive sentiment on the global economy helped it rise to a 19-month high of $87.15.
ICE June Brent was up 35 cents at $80.18 a barrel.
Industrial metals were also in consolidation mode. Copper for delivery in three months was flat at $6,880 a tonne on the London Metal Exchange. The red metal has dropped 11.2 per cent in the past two weeks.
Sugar continued to slide, with the market grappling with expectations of plentiful supply of the sweetener. ICE July raw sugar dropped 1.5 per cent to 13.47 cents per pound, its lowest level in over a year. Prices have fallen almost 60 per cent since February.
