Forexpros - Gold futures jumped to record levels in mid-day Asian trade Monday, as investors sought safer havens following Wall Street's sixth worst showing ever on a downgrade to the U.S. credit rating.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,745.25 a troy ounce during Asian mid-day trade, up USD26, or 1.45% higher.
Gold leapt to a daily high of USD1,748.25 on Monday, topping USD1,700 an ounce for the first time following Standard & Poor's U.S. credit rating downgrade from AAA to AA plus.
Wall Street ended down more than 6%, with U.S. stocks posting their worst losses in three years and Asian markets followed suit with shares in Japan, Hong Kong, Australia and South Korea all sharply lower.
J P Morgan on Monday said it was forecasting spot gold to hit USD2,500 an ounce by the end of the year following the downgrade of U.S. credit. The bank called its previous estimate of USD1,800 "too conservative".
Financial service provider UBS last week raised its three-month price forecast to USD1,850 an ounce, up 13.5% from an earlier estimate.
The UBS report predicted gold prices would remain well-supported in the short-term, citing sovereign debt concerns in Europe and slowing global economic growth .
Elsewhere on the Comex, silver for September delivery fell 0.45% to trade at USD38.88 a troy ounce, while copper for September delivery declined 1.3% to trade at USD3.882 a pound.