Gold bounces off as clashes in Egypt spur flight to safety

CHICAGO, Jan. 28 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange jumped the most since Nov. 4 on Friday, as the violent protests in Egypt buoyed up investor's demand for the relative safety of the precious metal. Silver and platinum both climbed.


The most active gold contract for April delivery surged 21.9 dollars, or 1.7 percent, to 1,341.7 dollars per ounce.


Gold regained steam on Friday as violence escalated in two cities near the Egyptian capital Cairo prompted investors to dump their stocks and flee to safer assets like gold and greenback.


A trader mentioned the rising concerns that the political turmoil in Egypt may soon spread throughout the Middle East and North Africa, causing oil price hikes, also offered a strong boost to the precious metal, as investors typically look at gold as a safe haven during times of political and economic uncertainty.


Gold has lost more than 7 percent this year, as investors gained confidence on global economic recovery and transferred their money from gold to riskier assets. A trader noted that the recent deep correction also prompted many bargain-hunters to step in on Friday.


Silver futures for March delivery surged 88.8 cents, or 3.3 percent, to 27.919 dollars per ounce. April Platinum added 1.5 dollars, or 0.1 percent, to 1805 dollars per ounce.
(Source:http://news.xinhuanet.com)