Gold soars to new 22½ year high Justin Brown Mon, 05 Dec 2005
The spot price of gold earlier on Monday surged to a fresh 22-and-a-half year high of $508.63 an ounce on continued strong fund buying on the Tokyo Commodity Exchange (Tocom), traders said.
At 9.15am, gold was quoted at $506.35/oz, up $1.40/oz from the metal's Friday close. The level of $508.63/oz is the highest level for gold since February 1983, when gold fixed in London at a high of $511.50/oz.
Gold's highest London's fixing was $850/oz in 1980.
"Most of the buying of gold this morning has come from the Far East, with some interest shifting to Tocom from the New York Commodity Exchange (Comex).
This move is partly due to the stronger US dollar against the yen. It appears that gold will test $509/oz soon, while at $502/oz gold is likely to get good support," a European trader said.
"The bias for gold remains to the upside. However, gold is vulnerable to profit taking as we move toward the year end. The gold market is particularly thin, especially in Europe," he added.
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