Gold on longest winning streak since 1920!
NEW YORK - June 18, 2010 - Gold rose to a record in London and New York as investors bought the metal to protect wealth from Europe’s financial turbulence and on concern that the economic recovery isn’t as strong as expected.
The metal is set for an eighth weekly gain in nine weeks on speculation debt-cutting measures by European nations will slow expansions. U.S. data Thursday showed slowing manufacturing growth and an increase in jobless claims. European Union leaders Thursday agreed to disclose how banks perform on stress tests, seeking to show the financial system can withstand shocks.
The metal’s “unique property as the ultimate safe-haven currency is making gold an attractive investment,” said Bayram Dincer, a commodity analyst at LGT Capital Management in Pfaeffikon, Switzerland. “Gold’s recent price move is a function of eurozone debt worries. Investors are looking to substitute assets and currencies with gold.”
Gold, up 15% this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed other commodities as global equities slipped, and this month reached all-time highs in euros, sterling and Swiss francs. Holdings in exchange-traded funds backed by gold reached records, while coin sales from mints accelerated, tightening supplies.
Gold for immediate delivery gained as much as US$13.10, or 1.1%, to US$1,258.25 an ounce and traded at US$1,257.40 at 1:17 p.m. in London. It surpassed the previous all-time high of US$1,252.11 set June 8 and is up 2.5% this week. The metal for August delivery was 0.8% higher at US$1,258.30 on the Comex in New York after reaching US$1,260.90.
