Source: Xinhua

03-06-2009 10:20

CHICAGO, March 5 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange surged on Thursday for the first time in recent nine sessions due to the increasing save-haven demand for gold as U.S. stock market plunged again. Silver and platinum went up too.

Gold price for April delivery was up 21.10 U.S. dollars, or 2.3 percent, to settle at 927.80 dollars an ounce. May silver closed at 13.12 dollars per ounce, up 20.5 cents. April platinum gained 19.80 dollars to 1,064.60 dollars per ounce.

The Dow Jones index plummeted 281 points to 6,594 points, the new lowest level in 12 years, which was considered by the traders to promote precious metals' demand for safety investment.

The European Central Bank cut its interest rate 50 basic points to 1.5 percent and indicated a further cut. Meanwhile the Bank of England cut its rate 50 basic points to the record lowest level of 0.5 percent. They both reminded investors of the future inflation and its eroding effect on wealth, strengthening the appeal of gold as safety choice.

Analysts indicated that technical short-covering gave gold some support to rally after a huge decline since Feb. 20, when the precious metal touched as high as 1,007.70 dollars per ounce and lost about 100 dollars in the following eight straight sessions.

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Editor:Qin Yongjing