Thursday, August 18, 2011
Despite a report from the World Gold Council showing that demand for the precious metal has subsided, gold soared to a new record high today on the back of another stock market plunge and an announcement from Venezuelan President Hugo Chavez that the country’s gold mining industry would be nationalized.
Gold touched a new record high of around $1827 dollars an ounce as the Dow Jones plunged by 500 points in early trading.
Gold soared to new heights even in the face of aWorld Gold Council report that said demand was down 37% year on year.
However, the report noted that there was “increasing acceptance of higher price levels” globally, which explained a modest 3% fall in recycling gold on the supply side.
Although today’s new high for gold is obviously being driven by a flight to safety as the stock market crumbles, Hugo Chavez’s announcement last night that he was to nationalize the country’s gold mining industry undoubtedly has had an impact on today’s trading.
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