FX:Gold futures climb to fresh record high as debt worries linger
Forexpros – Gold futures rallied to a fresh record high for the fourth time in five days on Tuesday, trading above USD1,600 an ounce as U.S. and European sovereign debt concerns boosted the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,609.15 a troy ounce during late Asian trade, climbing 0.2%.
It earlier rose as much as 0.26% to trade at a record high USD1,610.35 a troy ounce, eclipsing the previous day’s high of USD1,607.30 a troy ounce.
Gold prices advanced for the 12th consecutive day, its longest stretch of gains since August 1970. Euro-denominated gold prices traded at EUR1,140.70, hovering below Monday’s all-time high of EUR1,145.10 a troy ounce.
Gold prices also hit record highs in sterling, South African rand and Canadian dollar terms.
Global financial service provider Barclays said in a report earlier that, “Gold prices have hit fresh highs across several currencies on macro unease, the dollar weakening and the escalation of European sovereign debt uncertainty creating a favorable backdrop."
U.S. Treasury Secretary Tim Geithner said on Monday that the U.S. government was “running out of time” in regards to negotiations over lifting the country’s USD14.3 trillion debt ceiling before an August 2 deadline.
Meanwhile, Spanish government bond yields rose to a euro-lifetime high of 6.32% on Monday, approaching the 7% mark that prompted peripheral euro zone nations, Greece, Portugal and Ireland to seek bailouts.
Euro zone finance ministers were to meet later in the week to focus on “the financial stability of the euro area as a whole and the future financing of the Greek program,” according to the president of the European Council, Herman Van Rompuy.
Gold is often considered a safe haven in times of economic uncertainty and financial turmoil.
Elsewhere, silver for September delivery was up for a sixth day, gaining 0.87% to trade at USD40.87 a troy ounce, the highest price since May 4.
Silver prices have rallied nearly 16% in July as investors sought a cheaper alternative to gold.
