The price of Gold rose yesterday to its highest level in a month, with market-watchers claiming poor economic forecasts in the UK and Europe as the reason for the sudden rise.
By the close of trading Monday, Gold had peaked at $1,553.30 an ounce – with several observers suggesting that the rise could only continue. As Suki Cooper of Barclays Capital in New York suggested; “Gold continues to draw safe haven interest”.
Indeed, international concerns over the health of the US economy and predicted growth figures have seen the dollar weaken in the last week.
Silver also benefited from renewed fears over paper currencies – regaining recent lost ground to hit $37.05 an ounce, close to its previous peak of $40 an ounce.
Despite the market correction that Silver underwent in May – falling back to around $32 an ounce following a period of phenomenal growth – it would appear the metal is still very appealing to investors seeking a safe haven. While prices remain at an accessible level, it seems likely that many unable to afford Gold will continue to buy into Silver.
It would seem that bullish enthusiasm for precious metals is far from over – with Walter de Wet of Standard Bank claiming; “We think we’re going to…test the all-time highs”.