Gold hits 2-month high on safe-haven buying

Gold futures on the COMEX Division of the New York Mercantile Exchange posted strong gains on Tuesday, with the price once hitting 1,251.0 dollars per ounce, the highest level since June 28, as investors' concerns about the fragile U.S. recovery sparked fresh demand for safe-haven assets. Silver surged, but platinum ended moderately lower.

The most active gold contract for December delivery rose 11.1 dollars, or 0.9 percent, to finish at 1,250.3 dollars per ounce.

The prices of single-family homes in 20 major cities rose a seasonally unadjusted 1.0 percent in June, according to the Case- Shiller home price index released by Standard & Poor's on Tuesday. But economists expected the Case-Shiller report to show price declines by August, since the better-than-expected reading in June only reflected the lingering boost from homebuyer tax credits. Gold inched up after the report released.

The Conference Board said on Tuesday its confidence index rose to 53.5 in August, up from a revised 51 in July, economists only expected a minor increases. Although the jump in consumer confidence has sent a positive signal to the markets, it failed to quell the financial anxiety which has supported gold to remain in an uptrend since the opening.

Trader noted that many investors embraced precious metals like gold and silver, which are considered as better store of value, as parts of their portfolio on the last day of the month, on concerns about the strength of the U.S. economic recovery.

Gold price has surged 5.6 percent in August on safe-haven buying, rebounding from a 5 percent loss in July, which is the largest monthly dip since last December.

December silver surged 35.8 cents, or 1.9 percent, to 19.432 dollars per ounce. October platinum lost 9.6 dollars, or 0.6 percent, to 1,523.5 dollars per ounce.

Source:Xinhua