Gold reaches loftier heights on concern about US recession as investors hedge stock holdings

Publie le lundi 22 aout 2011 16h04

Gold prices are climbing on fears about what's next for the slowing global economy.

Gold ended Monday at US$1,892 an ounce.

Investors are buying gold because it is seen as a relatively stable asset. Traders are concerned about the potential for another U.S. recession, Europe's debt problems getting worse and volatility in financial markets.

Investors also are waiting to see if Federal Reserve Chairman Ben Bernanke makes a significant announcement during his speech Friday in Jackson Hole, Wyo.

A year ago, Bernanke offered the first clues of a government bond-buying program designed to stimulate economic growth. That caused commodity prices to skyrocket as the dollar weakened against other currencies.

Other commodities are mostly higher.