Safe Haven Investors Hold Firm With Bullion

Yesterday’s slide in the volatile global equities market saw gold making further gains as more investors sought safe haven refuge.

Analysts predict that gold will continue to see gains in the near term while the key agenda for investors remains reduction of risk.  Gold prices rose yesterday trading at $862.75 an ounce, up $5.30 an ounce at New York’s notional close on Monday - gaining almost 4% against losses on the equity markets.

Gold traditionally performs well when global equity markets slide, gold has also benefited from the decline in other commodities.

The FTSE 100 has started with gains after yesterday’s huge losses, but many analysts suspect that we’re still not at the bottom, pointing out that any real changes resulting from the bail out plan will take a minimum of a month to be fully initiated.  And on another note, it was estimated that the US bailout package was effectively soaked up yesterday in terms of the losses that the American stock market suffered!