Gold Safe-haven Demand as Fed Credibility on the Line

Gold surged to $928.50 in New York on Friday and was up $16.20 and silver closed at $17.62, up 50 cents. While the dollar has strengthened somewhat, oil has again rallied sharply to new record highs ( up 2.4% to over $143.60 per barrel ) and this should result in gold remaining well bid at these levels. Geopolitical risk and continuing tensions in the Middle East and between the U.S. and Iran appear to be part of the driving force behind new record highs and this has led to gold being firm. After Thursday's largest one day move since 1985, gold followed through on Friday and has continued to rise in Asia and early European trading. In unprecedented trading, gold has rallied from $873 per ounce in the moments after the Federal Reserve decision to keep rates on hold ( June 25th... [read full story]