Gold News

Futures soar above $770

Outlooks for gold were looking increasingly rosy today (October 25th), with spot gold and futures both significantly up in early New York trading.

Spot gold was up nearly $3 on prices at the close yesterday, with investors queuing up to buy gold and sending it as high as $764.30, with futures for December delivery registering an even greater $5.50.

Futures had fallen yesterday, as oil prices eased off and inflationary fears were curtailed, but the December buyers of the precious metal came in great number to send its price back above the $770 mark by this morning.

Poor existing home sales figures were blamed for the fall in stock market confidence and the rediscovered bullishness of gold investors, with the probability of a new rate cut spelling new inflation concerns and further gold buying.

Analysts at Action Economics told MarketWatch: "Gold prices are higher on the back of high oil prices and lingering credit fears and growth concerns, which prompted safe haven buying."

Gold warehouse inventories remained static amid the change in price, sticking at around 7.3 million troy ounces, according to data from Nymex.


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