Thursday, September 29, 2011

Gold Holds Gains; Heads for Worst Month Since 2008


By: Reuters




Gold ticked up on Friday, having gained in the previous session on German approval of a stronger bailout fund to counter the euro zone debt crisis, but the metal was heading for its worst monthly decline in three years. 
Gold
Jose Luis Pelaez | Iconica | Getty Images

Spot gold [XAU=  1626.6899    12.64  (+0.78%)   ]added $7.79 an ounce to $1,621.84 an ounce by 0043 GMT. Despite the gain, prices were headed for of 11 percent, their worst since October 2008 when they tumbled 17 percent following the collapse of Lehman Brothers.
Gold rallied to a lifetime high around $1,920 an ounce in early September. 
U.S. gold [GCCV1=  Unavailable      ()   ] rose $7.2 an ounce to $1,624.50 an ounce. 
German Chancellor Angela Merkel won a vote on enhancing the euro zone's bailout fund without needing to rely on the opposition, a senior member of Merkel's CDU party said on Thursday.
The euro clung to modest gains in Asia on Friday, following a brief boost after Germany approved an expansion of the euro zone bailout fund, but investors remain worried due to the many hurdles ahead of a workable resolution to the European crisis.

The Nikkei share average was flat on Friday, wavering in and out of positive territory in the first minutes of trading as investors took profits after a late surge in the previous session, and was on track to gain for the week.
U.S. crude futures extended gains on Friday, as the German vote to beef up the euro zone rescue fund and upbeat U.S. economic data eased market worries over a slowing global economy.
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