Gold hits four-week high as swine flu fears grow and China builds reserves

Gold hits four-week high as swine flu fears grow and China builds reserves
Gold has climbed to its highest in almost a month as fears of a global flu pandemic prompted investors to seek safer assets, according to a report from Reuters.

Last Updated: 10:44AM BST 27 Apr 2009

Gold, which has registered four straight sessions of gains, has risen by 5pc over the past week
Fears of a global swine flu pandemic grew with new infections in the US and Canada on Sunday, while millions of Mexicans have stayed indoors to avoid a virus that has killed more than 100 people.

Gold hit an "intra-day" high (in other words, not a closing price) of $918.25 an ounce, its highest since April 2. The price had been boosted on Friday by the revelation that China had secretly raised its gold reserves by 75pc since 2003, confirming years of speculation that it had been buying.


Gold, which has registered four straight sessions of gains, has risen by 5pc over the past week and is just 8pc below an 11-month high above $1,000 hit in February.

Darren Heathcote of Investec Australia said: "I am not too sure how the swine flu will play out. The problem is the potential for this to explode to pandemic proportions, leaving a lot of people very wary. It may well benefit gold, as gold would be seen as a safe haven.”

Dealers expected gold to face resistance around $932 – an intra-day high seen in early April. "Ultimately, we could well be targeting that mid $960s again, which is that peak in the middle of March," added Heathcote.

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/5229027/Gold-hits-four-week-high-as-swine-flu-fears-grow-and-China-builds-reserves.html