07 June 2011

Gold hits one-month high

Gold rose to its highest price in more than a month on Monday, as fears of a slowing US economy and expectations that Federal Reserve monetary policy would remain easy prompted safe-haven demand.

Bullion has gained nearly 6% in the past three weeks, boosted by a string of disappointing US economic indicators including Friday's weak jobs data.

"A lot of people are taking their risk off by getting out of the S&P 500 and other riskier assets. There is too much uncertainty with the US currency and the euro," said Phillip Streible, senior market strategist with Lind Waldock, a unit of futures broker MF Global.

"So, people think the safest place is the gold market at the moment."

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