2 Month High For Gold Futures After 700 Billion Bailout Rejected

The rejection of the $700 billion bailout bill by the US House of Representatives fuelled negative concern about the credit crisis, pushing gold futures towards two month highs as investors seek safe haven assets.

As the demand for safe haven assets increases amid the banking turmoil, gold probably has room to go a lot higher over the coming weeks.  December delivery gold saw a 1.7 percent increase to $910 an ounce, while immediate delivery gold rallied to $925.10 an ounce.

Mining stocks also saw significant rises with Newcrest Mining Ltd., Australia’s largest gold miner, rising by 5.7% to A$29.64 during Sydney trading.

Some profit taking is expected of course, but the general consensus of opinion is that gold prices will soon be testing $950 an ounce…watch this space!