LONDON (SHARECAST) - Gold futures smashed through $1,500 an ounce on Tuesday as Standard & Poor's warning on US drove safe haven demand.
Gold for June delivery pushed past the key level of $1,500 an ounce but later settled lower at $1,495.10 an ounce, up $2.20 on the Comex division of the New York Mercantile Exchange.
The weaker dollar also supported demand for the precious metal. Concern about the euro also helped put a shine on gold prices as Portugal, Greece and Ireland ask for financial assistance.
Silver for May added 96 cents to $43.913 an ounce, 31-year high while copper held onto early gains after encouraging housing-starts data. The US Census Bureau showed housing starts grew at a 7.2% month on month in March to 549,000 compared to forecasts of 520,000.
Crude oil futures also ended higher on Tuesday with the weaker dollar providing support.
Light sweet crude for May delivery advanced $1.03 to $108.15 a barrel on the New York Mercantile Exchange. The contract expired at the end of the session.
Crude prices had closed lower on Monday after ratings agency Standard & Poor’s downgrading its outlook on US and prices took a while to recover after a weak start to Tuesday's session.
However reports of continued unrest in Nigeria soon fuelled interest. Supplies from the oil rich country have fallen sharply since the post election violence started.
