Gold hit its highest in nearly two weeks in light of the debt crisis of Europe

Gold hit its highest in nearly two weeks in light of the debt crisis of Europe

 

 

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Monday 23 May 2011: 09:27 AM

SINGAPORE (Reuters) - Investors rushed to sell the euro and turned to gold after Fitch lowered the credit rating of three degrees, while Greece and the silver faced difficulty in catching the yellow metal.

In a further sign of worsening debt crisis of the European cut, Standard & Poor's rating outlook to Italy to "negative" from "stable", which helped gold to record the highest level in nearly two weeks.

The price of gold in the spot market $ 1.50 to 1508.89 dollars a troy ounce (ounce) by the time 0606 GMT, after hitting its highest level during the session at 1518 dollars and this is the highest level for the precious metal since May 11 but less than the record high for gold of $ 1575 dollars, which record the beginning of May

Said Ong Yi Ling, analyst at Phillip Futures in Singapore: "I expect gold to be supported above the level of $ 1500. If the crisis began spreading to countries other than Greece, we may see gold heading to new record high."

"The silver is still trying to gain after a significant decline. If we see a new record level of gold, I think that silver will rise."

There have been silver little changed at 34.76 dollars a troy ounce after recording its highest level during the session at $ 35 in volatile trading.

The price of platinum fell to $ 12.51 of $ 1755.99 an ounce, while palladium fell 6.78 dollars to 727.22 dollars an ounce.