Gold News

London gold hits $800 mark

Gold prices in London surpassed the $800 mark today (December 19th) as a result of the European Central Bank's (ECB's) contribution to efforts to subdue the effects of the global credit crunch.

By 10:25 GMT prices for gold for immediate delivery reached $803.67 per ounce following yesterday's €348.6 billion ($501.7 billion) banking system cash boost from the ECB, Bloomberg reports.

In total, gold has seen an overall gain of 26 per cent in London this year. Today's rise saw prices almost reach the record high of $850 per ounce, which was achieved on November 7th following significant dollar-euro exchange movements.

Yesterday, HSBC Securities analyst James Steel said in a note that investors may display a declining confidence in the global central banks' efforts to stabilise markets following US subprime market turmoil.

"In such a climate, investors may be likely to seek bullion's safe-haven properties," he stated.

UK government figures released yesterday indicated that consumer price inflation - one of the key measures on which the Bank of England bases its interest rate decisions - remained unchanged between October and November at 2.1 per cent.


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