Gold touched a 25-year high, platinum reached a record and crude oil traded above US$70 ($111.6) a barrel as tensions increased over Iran's nuclear-research programme.
"The dispute is creating a fear and that risk premium been priced in," for oil and gold, said Andrew Harrington, an industry analyst at ANZ
bank in Sydney yesterday.
"The heightened sense of uncertainty makes people want to hold gold."
Iran, the world's fourth-biggest oil producer, must stop uranium enrichment and allow full international inspections of its nuclear programme, US President George W. Bush said.
Gold futures on the New York Mercantile Exchange rose as much as US$1.40, or 0.2 per cent, to US$702.90 an ounce in after-hours electronic trading, the highest since October 9, 1980, when the contract reached US$708.50.
Gold touched a record $850 an ounce in January 1980 after the 1979 Iranian revolution cut oil exports.
Platinum for immediate delivery rose US$9, or 0.7 per cent, to a record $1244.50 and traded at $1243.25 in Sydney. Prices have climbed 42 per cent in the past 12 months.
Geopolitical turmoil can spur investors to buy precious metals.
Bullion has surged 35 per cent this year and oil reached a record last month partly due to the Iran dispute, which has sparked fears that supplies from the Middle Eastern nation may be disrupted.
The US Government said yesterday that a letter from Iran's President had not reduced US determination to halt the Islamic republic's plan to enrich uranium.
Crude oil for June delivery was little changed at $70.60 a barrel in after-hours electronic trading on the New York Mercantile Exchange after rising 2.4 per cent yesterday to $71.45.
Futures reached $75.35 on April 21 and 24, the highest since trading began in 1983. Prices are up 36 per cent from a year ago.
Gold and platinum also rose as investors sought alternative investments after the US dollar fell close to its lowest in a year against the euro.
Fund managers are pouring money into commodities such as copper, gold and oil as they search for better returns than on stocks and bonds.
"The market is looking for alternatives to the [US] dollar and diving into the metals," said Ron Cameron, a Sydney-based analyst at Ord Minnett. "The dollar is still going to come under more pressure."
Up, up and up
* Gold - up US$1.40 ($2.20) to US$702.90 an ounce.
* Platinum - up US$9 to a record US$1244.50 an ounce.
* Oil - US$70.60 a barrel.
- BLOOMBERG
Iran concern spurs gold to 25-year high
Gold touched a 25-year high, platinum reached a record and crude oil traded above US$70 ($111.6) a barrel as tensions increased over Iran's nuclear-research programme.
"The dispute is creating a fear and that risk premium been priced in," for oil and gold, said Andrew Harrington, an industry analyst at ANZ
AdvertisementAdvertise with NZME.
