Updated 1 hour ago
SINGAPORE: Gold climbed to a record high and oil fell on Thursday as investors fled to safe haven assets following another sharp sell-off on Wall Street, sparked by fears that Europe's debt crisis could spread to France.
The euro's financial woes returned to focus on rumours France may be in trouble, stealing the spotlight from the U.S.Federal Reserve's promise to keep interest rates low for at least another two years.
"It all appears to be about confidence," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney. "Each bit of negative news erodes confidence and that erodes demand."
Although they were denied, rumours of an impending downgrade of France's credit rating and the financial health of a key bank in the country rattled markets, sending U.S. stocks tumbling more than 4 percent on Wednesday.
Asian stocks opened lower on Thursday, but have since recovered on support from rising U.S. stock futures --indicating a rebound when Wall Street reopens.
Spot gold hit an all-time high of $1,813.79 an ounce, while U.S. gold also hit a record of $1,817.60.
The relative strength index for spot gold rose to near 86, the highest since October 2010, suggesting a heavily overbought market.
"Gold remains the last protection against the potential for widescale money printing as governments seek to recapitalize their banks and restimulate their economies," UBS said in a research note. (Reuters)
The euro's financial woes returned to focus on rumours France may be in trouble, stealing the spotlight from the U.S.Federal Reserve's promise to keep interest rates low for at least another two years.
"It all appears to be about confidence," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney. "Each bit of negative news erodes confidence and that erodes demand."
Although they were denied, rumours of an impending downgrade of France's credit rating and the financial health of a key bank in the country rattled markets, sending U.S. stocks tumbling more than 4 percent on Wednesday.
Asian stocks opened lower on Thursday, but have since recovered on support from rising U.S. stock futures --indicating a rebound when Wall Street reopens.
Spot gold hit an all-time high of $1,813.79 an ounce, while U.S. gold also hit a record of $1,817.60.
The relative strength index for spot gold rose to near 86, the highest since October 2010, suggesting a heavily overbought market.
"Gold remains the last protection against the potential for widescale money printing as governments seek to recapitalize their banks and restimulate their economies," UBS said in a research note. (Reuters)
