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Gold Futures Surge to Record $1,697.70 on Haven Demand

Sunday, 07 August 2011 07:56 PM EDT

(Updates with analyst comment in third paragraph.)

Aug. 8 (Bloomberg) -- Gold futures surged to a record $1,697.70 an ounce on demand for an investment haven as the dollar slumped following Standard & Poor’s downgrade of the U.S. long-term credit rating from AAA.

Gold futures for December delivery rose $41.40, or 2.5 percent, to $1,693.20 an ounce at 7:15 a.m. Tokyo time in electronic trading on the Comex in New York after reaching the all time high.

“Gold will most likely be a sharp recipient of safe- haven flows” following the U.S. rating cut, Edel Tully, a London- based analyst at UBS AG, said in a report. “Our previous one- month forecast of $1,725 is likely to be easily met in the short term.”‬

To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

© Copyright 2024 Bloomberg News. All rights reserved.


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(Updates with analyst comment in third paragraph.)Aug. 8 (Bloomberg) -- Gold futures surged to a record $1,697.70 an ounce on demand for an investment haven as the dollar slumped following Standard Poor s downgrade of the U.S. long-term credit rating from AAA.Gold futures...
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Sunday, 07 August 2011 07:56 PM
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