Tuesday, 11 May 2010

Spot Gold Prices Reach All Time High at $1234

The price of spot gold rose to its highest level in history today during the New York trading session. Investor concerns over the global economy have been driving more money into the commodity, fueling rapid gains.

Safe haven assets climbed during today's trading as traders moved out of riskier assets and into stable assets such as gold. This occurs at times of high stress in the markets. Traders doubt the global economy's ability to maintain a sustainable recovery in the face of the European fiscal crisis. Worries that the EU/IMF aid package may not satisfy the financial needs of distressed European nations are weighing on riskier assets, thus driving the gains for spot gold.

Spot gold prices rose to a an all time high at $1234.23, from an opening day price of $1201.16. The previous high for spot gold prices was set earlier in December, 2009 at a price of $1224.70. The EUR/USD was trading lower at 1.2683 after beginning today at 1.2746. Spot crude oil failed to hold its gains above the $77 mark and was trading lower at $76.

The buying of spot gold may continue into tomorrow's trading. Major economic data is set to be released. The data releases traders should be eyeing are German preliminary GDP, British unemployment numbers, the U.S. trade balance, and the weekly crude oil inventory data. Should these numbers come in on the lower side of economic forecasts, spot gold may continue to rise to prices not seen before.