Deutsche Bank's Richardson on Gold After U.S. AttackMining News
Wed, 12 Sep 2001, 4:54pm EST
Deutsche Bank's Richardson on Gold After U.S. Attack: Comment
By Jason Gale
Melbourne, Sept. 12 (Bloomberg) -- Peter Richardson, head of global commodities research with Deutsche Bank AG comments on the gold market after planes hijacked by terrorists destroyed the World Trade Center and crashed into the Pentagon. Gold for immediate delivery rose $14.70, or 5.4 percent, $286.25 an ounce in late London trading, the biggest one-day gain since Sept. 28, 1999. Spot gold rose as high as $292.50, the highest price since May 21. Spot gold recently gained $3.25, or 1.1 percent, to $289.50 an ounce in Asian trading.
``I think it's pretty clear that the initial reaction has been into safe haven buying in respect to gold. I think there will inevitably be -- until it's clear which way this is all going to go -- some degree of further safe haven buying.
``We'd certainly expect to see continued support for gold, even if it doesn't runaway, because I think if you look back at previous situations like this, whilst this is a big, single-day move in gold, it's not certainly unprecedented.
``It tells me that there is a lot of uncertainty and anxiety out there, but gold is obviously the logical place that people have gone to in times of great uncertainty and distress.
``I think, certainly in terms of the initial impact on the gold market (it's comparable with the Gulf War), but there's been a much smaller impact on the oil market.'' |
