Gold, platinum reach record levels

Gold and platinum rose to records for a second day and crude oil traded near $100 a barrel as the dollar's slump enhanced the appeal of raw materials as an inflation hedge.

Metals including gold, which rose beyond $850 an ounce for the first time on Wednesday, have farther to climb, Evy Hambro, managing director of BlackRock Investment Management Ltd, said yesterday.

"We see fantastic strength likely in gold and platinum," pointed out Hambro, whose $15 billion World Mining Fund rose the most among Europe's 10 largest stock funds last year.

Gold's increase last year was the biggest since 1979, when the Iranian revolution cut oil exports and US inflation surpassed 13 percent.

A rally in metals prices over the past five years has helped propel shares of companies including Rio Tinto Group and Xstrata Plc to records.

Gold for immediate delivery in London gained as much as $8.20, or 1 percent, to $865.75 an ounce and traded at $866.18 as of 12:04 pm local time.

Newcrest Mining Ltd, Australia's biggest gold mining company, increased to a record yesterday in Sydney trading.

Violence in the Middle East, Pakistan and Nigeria has also spurred demand for gold. The metal surged 5.3 percent on September 11, 2001, the day terrorists attacked the United States.

Agencies

(China Daily 01/04/2008 page17)