RTTN:Gold Advances To Fresh Record As Risk Appetite Fades
(RTTNews) - The price of gold moved to a fresh record peak Friday morning as investors shun riskier assets amid global growth jitters.
Morgan Stanley yesterday revised down its global growth outlook for 2011 to 3.9 percent from 4.2 percent and Deutsche Bank trimmed its forecast for Chinese gross domestic product growth to 8.9 percent from 9.1 percent in 2011 and 8.3 percent down from 8.6 percent in 2012.
Gold for December delivery, the most actively traded contract, gained $54.30 to $1,876.30 an ounce. Yesterday, gold advanced to a fresh record after a slew of disappointing U.S. economic data saw a massive flight to safety. European stocks suffered their worst daily losses in two years, boosting the safe-haven appeal of the yellow metal.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,286.83 tons from 1,271.98 tons.
Meanwhile, the U.S. dollar was hovering near its weekly high versus the euro, while lingering near a three-month low against sterling and ticking lower versus the Swiss franc and the yen.
In economic news, German producer price inflation accelerated in July after easing to a six-month low in June, data from the Federal Statistical Office showed. Producer prices increased 5.8 percent year-on-year in July, while economists expected a 5.3 percent rise.
Elsewhere, the prices of silver and platinum were moving higher in morning deals.
