Gold
a t 544.60 dollars per ounce Monday strikes 25-year high
AFP
LONDON
Petroleumworld.com 01 10 06
Gold prices hit 544.60 dollars per ounce on Monday, the highest
level since January 1981, owing to geopolitical tensions in the
Middle East and reports that China may increase its reserves of
the metal.
That marked an increase of 4.65 dollars per ounce from last Friday,
and beat the previous high last month of 541 dollars.
"Geopolitical tensions continue to provide reasons to be
positive on gold, with deteriorating situations in both Iran and
Iraq, while the possibility of Israels Prime Minister Ariel Sharon
not returning to office causes concerns over the Middle East peace
progress," said Barclays Capital analyst Yingxi Yu.
Gold was benefiting from its safe-haven status, with investors
ploughing funds into the market to safeguard their money. A recent
spike in oil prices has also raised fears of higher inflation.
Sharply increased demand from investment funds has pushed gold
prices higher in recent months amid creeping inflation in the
United States.
The price of gold had gained 18.0 percent in value during 2005.
Yu added: "Also supportive to sentiment were comments by
the Chinese State Administration of Foreign Exchange (SAFE) that
it is looking into more active management of its reserves, with
investing into commodities one of its options."
AFP 01 09 06
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