Published February 23, 2009

COMMODITIES
Gold price surges close to US$1,000 per ounce

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(LONDON) Gold prices sparkled this week, surging close to US$1,000 per ounce for the first time in about a year as investors sought a safe haven from turmoil on world stock markets, analysts said.

The price of crude oil zigzagged as traders tracked the worsening outlook for the global economy amid plunging equities.

Precious metals: The price of gold soared as high as US$999.1 per ounce, which was last seen on March 18, 2008, dragging other precious metals higher.

'Investors have evidently been purging any potential risk in their portfolio and turning to the perceived safe haven of gold which touched the underside of US$1,000,' said BetOnMarkets analyst Dave Evans. Gold is now trading close to the record high of US$1,032.70 which was struck on March 17 last year.

By Friday on the London Bullion Market, gold jumped to US$989 an ounce at the late fixing from US$933.50 a week earlier. Silver rallied to US$14.28 an ounce from US$13.37.

On the London Platinum and Palladium Market, platinum gained to US$1,086 an ounce at the late fixing on Friday from US$1,055 a week earlier. Palladium gained to US$216 an ounce from US$213.

Oil: Crude oil prices sank here as many traders took their cue from weak stock markets and the worldwide economic slowdown that has slashed energy demand, analysts said.

'Fears over a deteriorating global economic outlook sent equity markets tumbling . . . as investors shed riskier positions, with oil prices tracking them lower amid weakening demand concerns,' said Sucden analyst Nimit Khamar.

Global equities dived on Friday as investors ran for cover amid deep concern over the troubled financial sector and a spreading worldwide downturn, dealers said. - AFP