Bryn Resources Inc (BRYN)

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Gold Soars Above $900 on Safe-Haven Demand
Source: MarketWatch, Polya Lesova 01/23/2009

Gold for February delivery was last up $40.70, or 4.7%, to $899.50 an ounce in electronic trading on Globex. Earlier, gold soared to an intraday high of $901.20 an ounce on Globex, which is the metal's highest level since Oct. 8, 2008.

"The market is up on safe-haven buying after equity market weakness this morning and poor earnings, which make gold attractive to investors right now," said James Steel, gold analyst at HSBC.

"The true secular measure of currencies is gauged against gold," as the metal extends to fresh record highs against the British pound, three-month highs against the euro, nearly four-month highs against the U.S. dollar and only three-day highs against the rallying yen, said Ashraf Laidi, chief market strategist at CMC Markets.

Gold has breached well above its 200-day moving average against both the euro and the dollar, but the metal remains 11% lower than its 200-day moving average in yen terms, Laidi said in a research note.

"Since there remains ample upside in yen terms, Japanese investors may deem this as an opportunity to drive up the metal to next key targets, thus prompting global investor demand further higher," Laidi said.