(Reuters) – Gold hit record highs above $1,270 an ounce on Tuesday in its biggest one-day rally in four months, as the U.S. dollar declined broadly after upbeat data failed to convince investors to shift into risk-linked assets.
Gold is now on course for a 15 percent gain in 2010, fueled largely by investor nervousness that stemmed from the fallout from the euro zone debt crisis and from economic data that has suggested global economic growth may be losing momentum.
Spot gold was at $1,269.65 an ounce by 1515 GMT (11:15 a.m. EDT), up from $1,245.25 the day before, having hit a record high of $1,271.20 earlier in the session. U.S. gold futures for December delivery were last up $24.3 an ounce at $1,271.20.
“It’s continuing the trends that we’ve seen through this year really. Equity markets just remain very, very lacking in confidence, no one is prepared to put positions on and stick with them for any length of time,” said Credit Suisse precious metals strategist Tom Kendall.
“There is a lot of volatility and reaction to data … people are looking for that defensive asset.”
Gold has long served investors as an alternative to volatile currencies, equities or sovereign bonds that investors will swiftly punish….
Click on link below for the rest of the story…
- Gold leaps to record high (financialpost.com)
- Gold to hit $1,300 an ounce gold by year-end: GFMS (marketwatch.com)