Ifyouseekay
1st May 2010, 09:14 AM
(Reuters) - Gold hit a 2010 high above $1,180 an ounce on Friday, gaining 1 percent as a widening euro zone sovereign debt crisis prompted investors to buy the metal asset in a flight to safety.
The precious metal has rallied almost 6 percent in April, its biggest one-month rise since November, as credit ratings downgrades of Greece, Spain and Portugal unleashed a wave of risk aversion, channeling money into gold.
Michael Daly, gold specialist at futures broker PFGBest, said that gold tends to outperform other commodities in times of crisis, and the currency of choice is gold for investors who worry about the viability of fiat currencies.
"In the last few days, it has almost turned into panic-type buying. Every time you hit the wire, the European crisis worsens, and it's worsening day by day," he said.
"Gold is taking on legs of its own right now. It's a flight to safety."
http://www.reuters.com/article/idUSTRE63P02520100430
The precious metal has rallied almost 6 percent in April, its biggest one-month rise since November, as credit ratings downgrades of Greece, Spain and Portugal unleashed a wave of risk aversion, channeling money into gold.
Michael Daly, gold specialist at futures broker PFGBest, said that gold tends to outperform other commodities in times of crisis, and the currency of choice is gold for investors who worry about the viability of fiat currencies.
"In the last few days, it has almost turned into panic-type buying. Every time you hit the wire, the European crisis worsens, and it's worsening day by day," he said.
"Gold is taking on legs of its own right now. It's a flight to safety."
http://www.reuters.com/article/idUSTRE63P02520100430