Gold Climbs to a 25-Year HighMay 2, 2006
By Richard Beales in New York
The Financial Times
Gold climbed above $660 a troy ounce to new quarter-century highs yesterday as investors sought safety amid continuing tension over Iran's nuclear ambitions and worries about inflation and a weakening dollar.
Condoleezza Rice, the US secretary of state, said on Sunday that the country would press for sanctions against Iran at the United Nations.
Meanwhile, US crude oil rose above $72 a barrel as a refinery fire in Italy gave investors a fresh worry on top of nervousness about Iran and militant violence in Nigeria.
Gold for immediate delivery rose more than 1 per cent to a new 25-year high of $661.50 an ounce. In late morning trade in New York, prices eased to 659.60/0.60. The metal is up more than 25 per cent so far this year. Futures for June delivery also rose to a quarter-century peak of $664 on Comex before falling back to $661.60, 1.1 per cent higher.
Silver also rose yesterday, building on Friday's gain, the biggest in a single day in 11 years, which came as the listing of the first exchange-traded fund based on the metal sparked speculation that the fund's managers would have to buy more to meet demand.
Silver for delivery in July rose 34 cents to $13.95 an ounce on Comex. Silver for immediate delivery rose 26 cents, or 1.9 per cent, to $13.98.
The metal is up more than 50 per cent this year.
US crude oil surged past $73 a barrel. West Texas Intermediate rose $1.82 to settle at $73.80 a barrel, while IPE Brent crude futures also peaked above $73. The latter closed at $73.89 a barrel, up $1.07.
June gasoline, the new front month contract on Nymex, rose 2.48 cents, or1.2 per cent, to $2.114 agallon on concerns about possible shortages during the US summer driving season.
Regular petrol cost an average of $2.919 a gallon across the US, according to the latest daily report from the AAA, the motoring organisation - 30 per cent more than a year ago but still short of last September's high of $3.057. Prices are above $3 in several states.
Meanwhile, June heating oil added 1.51 cents to $2.028 a gallon.
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