CFD trading reveals gold increase
June 21st, 2010Gold has risen to record levels in London and New York following speculation there will be an increased demand for raw materials.
Chinese consumers are set to benefit after the third-largest economy in the world proposed to allow the yuan to move higher, as it will make commodities in other currencies less expensive, reports Bloomberg.
Jesper Dannesboe, a senior commodity strategist at Societe Generale SA in London, said: "Gold is benefiting from other commodities."
He added the news will act as "a catalyst, a trigger for buying today. People are still worried about sovereign debt levels".
Gold is heading for its best results since 1920 and with a 15 per cent increase this year is heading for a tenth annual gain.
During CFD trading gold for immediate delivery added as much as $8.50 (£5.72), or 0.7 percent, to increase to $1,265.30 an ounce and traded at $1,261.38 at 09:17 BST.
This surpassed the previous all-time high of $1,262.50 set on June 18th.
Earlier this week, managing partner of Baker Steel Capital Managers David Baker told Bloomberg gold is a safe-haven commodity.
Tags: cfd trading, gold
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