Daily Gold Update

Source:Bloomberg

New York — Gold rose to the highest price since March as a slump in global equity markets increased the appeal of precious metals as an alternative investment. Silver touched the highest since February. Stocks in Asia, Europe and the U.S. dropped after records showed that Federal Reserve policy makers saw risks last month to a U.S. economic recovery, and some Fed officials said more asset purchases may be needed to secure a stronger economic recovery. Some investors buy gold as a store of value when stocks decline.

�The fact equity markets appear to have stalled and inflation fears are on the increase should give gold increased upward momentum,� James Moore, an analyst at TheBullionDesk.com in London, wrote in a note today. Gold futures for June delivery gained $13.80, or 1.5 percent, to $951.20 an ounce on the New York Mercantile Exchange�s Comex division. Earlier, the price reached $951.80, the highest for a most-active contract since March 23. Bullion for immediate delivery in London jumped $16.19, or 1.7 percent, to $954.84 at 7:23 p.m.

Silver futures for July delivery climbed 16.5 cents, or 1.2 percent, to $14.445 an ounce in New York, after earlier touching $14.51, the highest since Feb. 24. The metal surged 28 percent this year, while gold is up 7.6 percent. See full Story: Bloomberg