Gold moves above $900 an ounce

Gold moves above $900 an ounce
By Javier Blas, Commodities Correspondent
Published: January 26 2009 11:04 | Last updated: January 26 2009 12:36

Gold rose above $900 a troy ounce on Monday, hitting a three and a half month high and posting record highs in euro and sterling terms as investors sought safe haven from troubled equities markets and expensive government bonds.

Precious metals traders said that investors, particularly in Europe, were pouring money into gold exchange traded funds – a popular way to gain access to the metal – and also buying physical gold, from coins to large bars.

EDITOR’S CHOICE
Lex: Gold - Jan-26View of the Day: Gold’s haven appeal - Jan-22Gaddafi threat to nationalise energy assets - Jan-25CEQ on FT.com: China faces iron ore surprise - Jan-23Q&A: The way ahead for emerging markets - Jan-26Lex: Unlucky aluminium - Jan-20“Effectively what we are seeing is safe haven buying,” said one London-based trader.

The total amount of gold held by the world’s gold ETFs last week rose above 40m ounces for the first time, consolidating the investment vehicles as the largest holders of physical gold after the official reserves of the US, Germany, the International Monetary Fund, France and Italy.