Gold not dead yet: Hits seven-week high, Bernanke said nothing
After a slow start to the month, gold fetched its highest price since June 19 on Thursday. Comex gold futures hit $1362 while the spot price reached as high as $1370.
And for once the bullion’s rise is not attributed to Ben Bernanke: Analysts say gold is up on safe-haven buying from political violence in Egypt and stock market weaknesses.
Cairo erupted in bloodshed on Wednesday, resulting in the deaths of more than 600 people. Egypt controls the Suez Canal which is a vital international gateway for oil and other commodities.
Silver Comex for September also added on Wednesday’s gains, going up to $22.95, a 5.32% jump. The precious metal’s spot price spiked nearly 5% as well.
But some major players have already given up on the yellow metal. Securities and Exchange Commission filings revealed on Thursday that John Paulson, of hedge-fund firm Paulson & Co, sold more than half of his shares in the SPDR Gold Trust, the world’s largest gold ETF. He also got rid of his Barrick Gold (NYSE:ABX) shares. Paulson amassed much of his fortune through the precious metal but has seen big losses in the past year.