| | Gold prices on the rise as investors play it safe |
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CreateTime:2008-09-19 Editor:liaoyan
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NEWCREST Mining Ltd shares rose the most in almost nine years yesterday after the price of bullion surged as the global financial crisis prompted investors to seek a safe haven.
Newcrest, Australia's largest gold producer, climbed 15 percent to close at A$24.50 (US$19.57) on the Australian stock exchange, the biggest gain since September 28, 1999, Bloomberg News said.
Zijin Mining Group Co, China's biggest producer, jumped 21 percent to close at HK$3.90 (50 US cents) in Hong Kong trading.
Gold had the biggest advance in 26 years and silver climbed the most since 1979 yesterday as stocks tumbled after the United States government took control of American International Group in an US$85-billion bailout.
"When there's uncertainty in the market, particularly uncertainty in the financial area, people do turn to safer stores of value and of course gold has always had that characteristic," Michael Heffernan, a client adviser with Austock Securities, said from Melbourne.
Gold for immediate delivery climbed 1.5 percent to US$876.45 an ounce. The metal jumped 11 percent yesterday, its biggest gain since September 3, 1982.
"It's pretty clearly a flight to safety," Toby Hassall, an analyst at Commodity Warrants Australia, said by phone from Sydney. Gold may reach US$900 an ounce by week's end, he said.
Zhongjin Gold Corp, China's second-largest producer, and Shandong Gold Mining Co, the third-largest, rose by the daily 10 percent limit in Shanghai trading. Zhongjin Gold advanced to 26.42 yuan (US$3.87) and Shandong Gold jumped to 30.69 yuan.
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