Shutterstock photo
Markets

Gold futures hit 1-week high on China inflation, EU debt fears

Shutterstock photo

Shutterstock photo

Forex Pros - Gold futures were up for a fourth day on Wednesday, climbing to a one-week high as the appeal of the precious metal was boosted amid concerns over China's high inflation and lingering fears over the euro zone's sovereign debt crisis.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,523.15 a troy ounce during late Asian trade, climbing 0.48%.

It earlier rose as much as 0.6% to USD1,525.05 a troy ounce, the highest price since May 4.

Earlier in the day, official data showed that China's annual rate of inflation in April rose 5.3%, down slightly from 5.4% in March, but still surpassing expectations for a 5.2% increase. The government's full-year inflation rate target stands at 4%.

Meanwhile, growing concerns over Greece's fiscal status continued to support the precious metal. On Tuesday, media reports, citing a senior Greek government official, said Athens expected to receive a new aid package totaling almost EUR60 billion as soon as next month. Greece subsequently denied the report.

Investors often buy gold as a refuge against economic uncertainty and as a hedge against inflation.

Global financial service provider Deutsche Bank forecast that gold prices could reach USD2000 an ounce by January 2012, as investors seek to protect themselves from a weakening dollar, quickening inflation and Europe's sovereign-debt crisis.

Elsewhere, silver for July delivery surged 2% to trade at USD39.25 a troy ounce during late Asian trade, after rising by as much as 2.5% to USD39.47, the highest price since May 5.

Silver prices have gained nearly 16% in the past four sessions, rebounding from their worst weekly decline since 1980 last week.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos