Azerbaijan, Baku, April 6 / Trend /
Gold climbed to a record for a second day as the sovereign-debt crisis in Europe deepened after Moody's Investors Service cut Portugal's credit rating and higher grain and oil prices worsened the inflation outlook, Bloomberg reported.
Immediate-delivery bullion increased $2.02 to an all-time high of $1,457.75 an ounce and traded at $1,454.80 an ounce at 1:06 p.m. in Singapore. Gold for June delivery in New York rose 0.2 percent to $1,455.90 an ounce after surging to a record $1,458.60 yesterday.
"Investors continue to exhibit symptoms of flight to safety," Shiyang Wang, analyst with Barclays Capital, wrote in a note to clients. Gold and silver gained as oil "forged ahead with its upward trajectory while ongoing geopolitical concerns and European sovereign-debt issues remained."
Demand for precious metals strengthened as investors sought a shelter to protect their wealth against the conflict in Libya and the nuclear crisis in Japan. Moody's downgraded Portugal's long-term government bond ratings by one level to Baa1 from A3, and said it's considering another reduction.
Gold has jumped 28 percent in the past year. It remains an attractive investment even at record prices, fueled in part by the Federal Reserve's $600 billion of Treasuries purchases through June, according to Bianco Research LLC in Chicago.
"I think the path of least resistance for gold is higher," said James Bianco, the firm's president, told Bloomberg Television yesterday.