By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) -- Gold surged in electronic trading on Monday, with futures for the precious metal notching a fresh nominal record, against a backdrop of concerns over the health of the economies in Europe and the U.S.
Investors were also looking ahead to Friday when Federal Reserve Chairman Ben Bernanke is set to discuss his economic outlook at the annual gathering of central bankers at the symposium in Jackson Hole.
Gold for December delivery GC1Z +2.07% traded at $1,882.50 per ounce, up $30.20 in electronic trading.
Meanwhile silver for September delivery SI1U +3.18% gained $1.38, or 3.3%, to $43.81 an ounce.
Europe, gold and retirement: advisers discuss
What do Europe and market volatility mean for your portfolio?Gold futures reached a fresh record closing high of $1.852.20 an ounce in regular trading in New York on
Friday, after hitting an intraday high of $1,881.40 an ounce.
Some economists said it was unlikely any new policy-easing initiatives would be unveiled Friday, even though the forum last year was used to signal a new round of asset purchases that eventually became known as “QE2”
“Expectations are high, but those looking for an outright commitment to QE3 are likely to be disappointed.
QE3 may well happen eventually, but the Fed will likely use up more conventional and less controversial tools first, wrote Societe General’s Aneta Markowska in an emailed note on Monday.
In a separate SocGen note released Monday, the French bank’s Michala Marcussen said she viewed euro area sovereign debt issues as among the top risks to the global economy, adding much will depend upon the actions of policy makers in heading off the escalating crisis.
“The US and Europe are growing at close to stall speed and recession risks have increased significantly,” wrote Marcussen.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.