Price of gold shoots up as financial markets take a battering

Price of Gold rocketed Wednesday, as the financial institutions went under a shockwave of destruction the price of gold notched the biggest one-day advance ever, as troubled AIG was bailed out by the federal government and HBOS announced they were in takeover talks, investors move quickly dumping their shares and investing into gold, silver and other safe-haven commodities. As gold is known for holding its value it’s extremely attractive during a time of crisis.

In after-hours trading in the New York Mercantile Exchange, Gold for delivery in December increased as much as $90.40, or 11.6 percent, to $870.90 an ounce after jumping $70 to settle at $850.50 in the regular session. This was gold’s largest one-day advance since 1999.

Gold price surged to $1,000 an ounce in March, prior to the rally gold had fallen 25 percent. This now looks like the start of another upward move analyst predict priced to increase back to $1,000 by the end of the year.

Source: Associated Press