Spot Gold Cracks $1,500 an Ounce (GLD)
April 20, 2011 6:24 AM
Spot gold prices passed $1,500 for the first time on Wednesday, helped by a weak dollar and ongoing concerns over European sovereign debt.
Gold is currently trading at $1,502.95, up $9.05 on the session.
Geopolitical issues, increasing concerns about the real value of paper currency and consistent commodity buying are all attributed to the rising price of gold.
Further, investors have traditionally seen the precious metal as a safe-haven asset in times of economic uncertainty.
"There are not a great deal of reasons to sell it at the moment, apart from concerns that there are a lot of longs in the market and there is a risk of sell-off at some point," Darren Heathcote, head of trading at Investec Australia told Reuters.
The SPDR Gold Trust ETF (NYSE: GLD), which reflects the performance of the price of gold bullion, is higher by 0.5%, or $0.72, in pre-market trade, to $146.65.
