Investing.com – Gold futures extended gains on Thursday, soaring to a fresh record high as increased demand for safe haven assets boosted the precious metal ahead of a flurry of key U.S. economic data.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,814.85 a troy ounce during European afternoon trade, surging 1.35%.
It earlier rose as much as 1.5% to trade at USD1,818.25 a troy ounce, exceeding the previous high of USD1,815.65 a troy ounce it hit on August 11.
Concerns over the global economic outlook were exacerbated after Wall Street investment bank Morgan Stanley cut its outlook for global economic growth for 2012, citing an “insufficient policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening”.
The investment bank added that the U.S. and Europe are “dangerously close to recession.”
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Meanwhile, the World Gold Council said in a report earlier that investment demand in India during the second quarter soared 78% to 108.5 metric tons, while jewelry demand increased 17% to 139.8 tons.
Gold investment demand in China jumped 44% to 53 tons in the second quarter, while jewelry demand rose 16% to 102.9 tons, the council said.
On Wednesday, Venezuelan President Hugo Chavez said that he intended to move forward and repatriate as much as USD11 billion in gold reserves held in the U.S. and Europe in order to nationalize the country’s gold holdings.
According to Chavez, Venezuela will transfer 99 tons of gold from the Bank of England to the country’s central bank.
In addition, Venezuela holds gold at Wall Street firm JP Morgan Chase, U.K. lenders Barclays and Standard Chartered as well as Canada-based Bank of Nova Scotia.
Elsewhere on the Comex, silver for September rose 0.12% to trade at USD40.47 a troy ounce, while copper for September delivery tumbled 1.45% to trade USD3.983 a pound.
Later in the day, the U.S. was to publish a flurry of economic data, which will help traders gauge the strength of the U.S. economic recovery.
The country was to produce government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,814.85 a troy ounce during European afternoon trade, surging 1.35%.
It earlier rose as much as 1.5% to trade at USD1,818.25 a troy ounce, exceeding the previous high of USD1,815.65 a troy ounce it hit on August 11.
Concerns over the global economic outlook were exacerbated after Wall Street investment bank Morgan Stanley cut its outlook for global economic growth for 2012, citing an “insufficient policy response to Europe’s sovereign debt crisis, weakened confidence and the prospect of fiscal tightening”.
The investment bank added that the U.S. and Europe are “dangerously close to recession.”
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Meanwhile, the World Gold Council said in a report earlier that investment demand in India during the second quarter soared 78% to 108.5 metric tons, while jewelry demand increased 17% to 139.8 tons.
Gold investment demand in China jumped 44% to 53 tons in the second quarter, while jewelry demand rose 16% to 102.9 tons, the council said.
On Wednesday, Venezuelan President Hugo Chavez said that he intended to move forward and repatriate as much as USD11 billion in gold reserves held in the U.S. and Europe in order to nationalize the country’s gold holdings.
According to Chavez, Venezuela will transfer 99 tons of gold from the Bank of England to the country’s central bank.
In addition, Venezuela holds gold at Wall Street firm JP Morgan Chase, U.K. lenders Barclays and Standard Chartered as well as Canada-based Bank of Nova Scotia.
Elsewhere on the Comex, silver for September rose 0.12% to trade at USD40.47 a troy ounce, while copper for September delivery tumbled 1.45% to trade USD3.983 a pound.
Later in the day, the U.S. was to publish a flurry of economic data, which will help traders gauge the strength of the U.S. economic recovery.
The country was to produce government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.