By Pham-Duy Nguyen
Sept. 17 (Bloomberg) -- Gold climbed as some investors sought safety in precious metals on concern more financial institutions will fail as the credit crisis deepens. Silver jumped almost 4 percent.
The U.S. government took control of American International Group Inc. in an $85 billion bailout to prevent the biggest financial collapse ever. The cost of borrowing dollars for three months jumped the most since 1999 as banks hoarded cash. Gold reached a record $1,033.90 an ounce in March after the Federal Reserve steered JPMorgan Chase & Co. to buy Bear Stearns Cos.
``Gold is going to be the beneficiary of a global move toward a safe haven,'' said John Licata, the chief investment strategist at Blue Phoenix Inc. in New York. ``There's a gigantic fear factor. Most people are concerned another bank is going to fail.''
Gold futures for December delivery gained $8.10, or 1 percent, to $788.60 an ounce at 9:40 a.m. on the Comex division of the New York Mercantile Exchange.
Silver futures for December delivery rose 41.3 cents, or 3.9 percent, to $10.93 an ounce.
Before today, gold fell 6.9 percent this year, while silver tumbled 30 percent.
To contact the reporter on this story: Pham-Duy Nguyen in Seattle at pnguyen@bloomberg.net.
Posts
No comments:
Post a Comment