Gold News

23/08/07: Gold rises once again

Stability in the stock markets enabled gold to rise once again on Thursday (August 23rd), after a $3 increase on Wednesday.

Spot gold reached $663.60 at 10:40 GMT, in comparison to $659.40 in New York on Wednesday evening.

It follows a seven-week low for gold of $641.10 last Thursday, which was brought about when investors began selling gold for cash to make up for losses associated with the US subprime market.

While the significant recovery this week bodes well, one trader has told Reuters that the storm may not yet be over.

"After the sell-off last week and the week before, we have seen the market has almost bottomed out and we are seeing a little bit of bounce now. Equities have recovered a bit, which has given the market a certain degree of support," the London trader said.

"But I am not convinced that it's a huge reversal coming back now, because the subprime (worry) is not over by any stretch of imagination. We could see a return to the concern."

Gold has traditionally been perceived as a safe haven for investors, but financial turmoil in recent weeks has seen the precious metal perform very much in the same way as other assets.


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals