Gold gains 2% on bank turmoil
Business Day reports with turmoil in the US Banking industry, commodity markets diverged causing gold to gain by more than 2%.
As Lehman Brothers filed for bankruptcy protection and Bank of America Corp agreed to acquire Merrill Lynch for $50bn, the dollar lost 2% against the yen, sparking talk of a US rate cut and potentially triggering fresh investor demand for commodities.
Peter McGuire, Managing Director of Commodity Warrants Australia says:
“Gold is on fire right now. There is a huge amount of nervousness about Merrill and Lehman. The financials are being hit really hard and things could get very interesting once US markets open.”
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Mon, Sep 15, 2008
Post by Melissa Pistilli, Gold Senior Reporter