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Investors Seek Safe Haven, Gold Provides Solution

February 8, 2016 at 23:32 by Vladimir Vyun

Gold rallied today, soaring more than 3 percent, and other precious metals joined the parade (with silver surging more than 4 percent) as investors were looking for safe assets amid prevailing risk aversion. Both US and European stocks collapsed on Monday, making traders nervous, and the decline of crude oil prices added to worries. Gold and other precious metals are often a reasonable choice when need for a safe haven arises, and it looks like market participants indeed took that option on Monday.

Gold also profited from speculation that the Federal Reserve would not be able to continue with its monetary tightening in the near future. Such talks make the dollar weaker, helping the metal at the same time. Bullion usually trades inversely to the US currency, though it is not always the case.

Futures for delivery of gold in April soared 3.47 percent to $1,197.9 per troy ounce as of 23:27 GMT on COMEX today. Silver for delivery in March surged as much as 4.48 percent to $15.43 per ounce. Spot price for platinum rose 0.32 percent to $927.93 per ounce, and palladium edged up 0.24 percent to $516.7 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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