Exchange traded funds that invest in gold and platinum advanced Monday as prices for both precious metals topped $1,900 an ounce.
Investors are seeking refuge in bullion on fears of a troubled global economy.
Gold topped $1,900 an ounce for the first time while platinum futures for October delivery touched a three-year high of $1,901.90, reports Steve Stroth for Bloomberg. [Gold ETFs Rise; Metal Hits $1,900 as Markets Await Bernanke]
Gains in the price of gold have been supported by safe-haven investors who dumped riskier assets in light of the weak data from the U.S. and lingering concern over the Eurozone debt fracas. [Platinum, Palladium ETFs Move Higher]
“Gold is still the safe haven, and as long as people fear recession in the U.S. and Eurozone debt problems, gold remains in demand,” stated Peter Fertig, owner of Quantitative Commodity Research Ltd., in the report.
“We are not expecting anything supporting the U.S. economy or the macro data for at least a couple of months,” commented Tom Price, global commodity analyst at UBS, reports Rujun Shen for Reuters. “Europe, we regard as even weaker. We are thinking $1,900-$2,000 over a very short period of time is a likely target.”
Additionally, metals traders are waiting on Federal Reserve Chairman Ben Bernanke’s speech Friday and any hint of further quantitative easing.