GOLD 0.51% $1,391.7 gold futures

gold hits 17 year high

  1. 50 Posts.
    Friday, September 16, 2005
    GOLD hit a 17-year high in New York trading overnight, driven by fears about an outbreak of global inflation, and slow U.S. economic growth.

    On the Mercantile Exchange, gold for December delivery closed at $US459.30 an ounce, up $US5.60/oz.

    Investment funds, which were also busy selling nickel, were the most active buyers of gold.

    Leonard Kaplan, president of Prospector Asset Management, told Reuters that people were buying gold "because it is now apparent that we are going to see massive inflation."

    George Gero from Legg Mason Wood Walker said: "Now you have momentum players and volatility players being attracted to the market".

    The next key point for the gold price is $US470/oz set in June, 1988. The all-time high is $US870 set in January, 1980.

    Australian 'golds' on the charge today included Newcrest Mining (up 3.2%), Dominion Mining (7%), St Barbara Mines (10.2%), Croesus Mining (4.3%) and Resolute Mining (4.5%).
 
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