Market talk sparks Gold
Precious metal tops $300 - up 4%
By Debra McGarry, CBS MarketWatch
Last Update: 3:13 PM ET Feb 4, 2000
Movers & Shakers ? Stock Discussion ? Sector Indexes ? Market Snapshot
NEW YORK (CBS.MW) -- Gold prices climbed over 4 percent Friday after talk in the market of producer buybacks and speculation of a hedge fund liquidation.
April gold hit $301.3 an ounce, up $12 , or 4 percent - its biggest gain this year.
Talk of producers buying back their hedge positions and speculation of a hedge fund unwinding sparked the gold market, said Dave Meger, analyst at Alaron Trading.
"With the dramatic swings that have been occurring in the bond and stock market, forces seem to be moving money from paper products to the gold market," said David Jesser, managing director of Alaron.
"Historically this type of price action is a flight to quality," Jesser said.
The PHLX Gold & Silver Index ($XAU: news, msgs) jumped 5.6 percent, led by Newmont Mining (NEM: news, msgs), which improved 1 3/4, or 8.2 percent, to 23. |
