Gold News

Breaking News! Gold Breaks $1,000 on Bear Stearns Bail-Out

The spot Gold Price shot past $1,000 an ounce for the first time ever as Wall Street opened on Friday and news broke that Bear Stearns – original sponsors of the first hedge-fund casualties of the subprime crisis back in May 2007 – is now getting emergency support from the Federal Reserve.

"The situation is very much that Bear Stearns was very close to the edge and it was much worse than we all thought," says Michael Klawitter, an analyst at Dresdner Kleinwort.

"It raises severe concerns over other banks."

The news that the Federal Reserve of New York and fellow investment bank J.P.Morgan Chase are providing 28-day liquidity loans to Bear Stearns also drove the US Dollar sharply lower on the currency markets.

The Dollar sank one per cent below ¥100 to reach a new 12-year low vs. the Japanese currency. The European single currency spiked to a new all-time high above $1.5680.

For more news & analysis from Friday's Gold Market action, see our London Gold Market Report here...

Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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