Gold soars above $400
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Gold is above $400 an ounce for the first time since 1996.
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SINGAPORE -- Spot gold has broken above $400 an ounce for the first time since March 1996 on a weakening U.S. dollar and global security worries.
Gold was quoted at $400.00 to $400.75 an ounce in Wednesday morning trade, compared with New York's last quoted level of $396.50/397.25. It rose as high as $400.25 an ounce.
Gold has been a traditional safe haven for investors in times of trouble and currency volatility. It started the year at $345 and reached an early peak of $388.50 in February, ahead of the start of hostilities in Iraq.
World Gold Council statistics show total world demand for the metal last year was 3415 tonnes. That included dental and industrial gold.
Asia, particularly India, is the biggest consumer market for gold, with most of India's purchases going into the jewelry trade.
Last year India accounted for 575 tonnes of consumer demand, out of a total 3056 tonnes. China took 240 tonnes, Japan 141 tonnes and Southeast Asia 255 tonnes.
Earlier this year, tensions over Iraq and then North Korea drove the gold price higher, but by April it was down again below $320. For much of the mid-year period it was trading around $350-$360, but began moving up sharply in September.
Weakness in the U.S. dollar, allied with ongoing security concerns over terrorism, are seen as factors in gold's most recent rise to the $400 level.
